by Arne
DelfsJonathan StearnsHelene Fouquet
(Bloomberg)
-- Late-night negotiations between the Greek, French and German government
leaders ended without any sign of a breakthrough that will unlock bailout funds
and ensure Greece ’s
future in the euro region.
With time
running out for a deal to free up the remaining 7.2 billion-euro ($8 billion)
tranche of aid, talks between Prime Minister Alexis Tsipras, President Francois
Hollande and Chancellor Angela Merkel broke up shortly before 1 a.m. on Friday
in the Latvian capital Riga with the three agreeing only to stay in close
contact.
The
negotiations took place in a “friendly and constructive atmosphere” and focused
on “the successful fulfillment of the current program,” according to a common
statement issued by the French and German governments separately. “It was
agreed that the talks between the Greek government and the institutions will be
continued,” they said.
The
statement was devoid of Hollande’s earlier optimism at paving the way for an
accord as soon as the end of the month, as he pledged to find “solutions to
restore confidence and release the funds that have been planned.”
The Greek
government too noted the constructive climate of the talks without alluding to
any imminent end to the impasse. An official, in a debriefing, signaled Greek
frustration by saying that a main obstacle is that the International Monetary
Fund needs to be on board.
‘Open
Issues’
While the
three leaders agreed “significant progress” had been achieved, “open issues”
remain, the Greek government said. These include pensions, sales-tax rates and
targets for a primary budget surplus, the official told reporters.
The
statements lacked Hollande’s upbeat tone as he arrived in Riga for a summit of European Union leaders.
Then he had opened the prospect of striking a political deal that could help
lead to an accord by finance ministers at the end of May or early June. “It
will be a friendly talk, but a talk in which we have to be able to draft
solutions,” he said.
Anti-Austerity
Hollande’s
comments reflected signs of determination to end the stalemate that has
buffeted Greek markets since Tsipras’s election in January at the head of a
coalition committed to ending austerity. The French and German leaders called
this week for the pace of talks to pick up, and Merkel is already considering
making a keynote speech to sell any deal to the German public and members of
her Christian Democratic-led bloc.
Absent too
from the final statements was any reference to an extraordinary finance
ministers’ meeting on Greece .
Hollande had said that the discussion with Tsipras would “help prepare for the
expected deadline, especially the eurogroup” meeting of euro-area finance
ministers “at the end of May or in early June.” That suggested a special
meeting since the next regular gathering isn’t due until June 18.
Merkel
didn’t comment on Greece
when she arrived for the EU leaders’ meeting, instead focusing on the summit
agenda of the bloc’s relations with six eastern nations including Ukraine .
Neither did
the chancellor offer her view on Greece
as she left the Riga
hotel room where the talks had taken place, fueled by bowls of berries and
bottles of water.
“Goodnight,”
she told waiting reporters.
To contact
the reporters on this story: Arne Delfs in Riga
at adelfs@bloomberg.net; Jonathan Stearns in Riga
at jstearns2@bloomberg.net; Helene Fouquet in Riga at hfouquet1@bloomberg.net
To contact
the editors responsible for this story: Alan Crawford at acrawford6@bloomberg.net
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