View more on these topics

Francois Hollande urges Greece to negotiate quickly

Greece-Athens-Acropolis-700x450.jpg

French President François Hollande has urged the Greek government to quickly return to the negotiating table with its creditors, after talks on Sunday with EU officials in Brussels failed to reach an agreement on a future bailout.

The BBC reports Hollande has said there is “little time” to prevent Greece from leaving the eurozone.

Speaking during a visit to Algiers, Hollande said: “It’s not France’s position to impose on Greece further cuts to smaller pensions, but rather to ask that they propose alternatives. “We have to get to work… everything must be done in order that Greece remains in the eurozone.”

Greece is expecting the EU and IMF to release €7.2bn (£5.3bn) of bailout funds.

Eurozone finance ministers will meet again on Thursday. However, Greek finance minister Yanis Varoufakis says he will not present new proposals at the meeting.

Last week, Greece put forward plans under which the country is willing to increase VAT and give ground on the target surplus the country needs to hit this year and next.

The EU and IMF have called for Greece to run a primary surplus of 1 per cent of GDP in 2015 and 2 per cent in 2016, although Greece is pushing for 0.6 per cent and 1 per cent,respectively.

The Greek government is also considering increasing pensioner contributions to healthcare from 4 per cent of monthly income to 6 per cent.

Greece rolled over a €300m (£221m) payment to the IMF last week, and has rejected a reform plan proposed by the EU.

At the end of June a total of £1.5bn is due to be paid.

Recommended

Ian McKenna: We need a better deal for existing customers

There is universal industry agreement that we must help more people get the protection cover they need. However, at a time when most consumers choose extra TV channels over life assurance, we are not even optimising what can be done in this area. The UK life assurance industry likes to believe it makes good use […]

Business-Handshake-Meeting-Deal-Low-Angular-700x450.jpg
1

Pension freedoms architect joins BlackRock

Chancellor George Osborne’s former chief of staff Rupert Harrison has joined fund manager BlackRock. Harrison, who is credited with driving the Chancellor’s revolutionary pension reforms, will take up the role of chief macro-strategist for funds investing in equities, bonds and cash. He is likely to be paid around £150,000 excluding bonuses, the FT reports. He […]

22

Peter Hamilton: The FOS is ignoring the law on complaints

Does the Financial Ombudsman Service fail to take the law into account when making its awards? I have come across awards that arose from income protection contracts in which it seems to have developed its own rules contrary to what the law would be on the issues in question. The relevant facts of one such […]

Aberdeen Gilbert Martin Gilbert 700x450

Aberdeen sells £100m stake for new fund launches

Aberdeen Asset Management is issuing £100m in shares to Japanese bank Mitsubishi UFJ Trust and Banking Corporation in a bid to power new fund launches. The asset manager will issue 200 million shares with a total paid-up amount of 50 pence per share. These will convert to ordinary shares only if Aberdeen’s Common Equity Tier 1 […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. The fundamental impasse seems to be that Greece wants ever more tranches of money but without being bound by the conditions that the EU is stipulating for advancing them. It’s a bit like somebody haranguing a lender to grant yet another mortgage top-up, even though he can’t afford to service the mortgage he’s already got, and insisting that the contract must be modified to meet the borrower’s requirements before he’ll sign it. In the real world, the lender would simply say No, this is the contract, if you want the money this is what you must sign.

    Greece is trying play a game of brinkmanship, betting that the EU doesn’t have the bottle to allow it to default and fall out of the EU. It can’t go on like this indefinitely, can it? It’s already gone on far too long as it is.

Leave a comment