Greece's Tspiras Says Won't Go Beyond Agreed Reforms

Greek Prime Minister Alexis Tsipras, struggling to contain a revolt in his left-wing Syriza party, said on Wednesday that his government would not implement reform measures beyond those agreed with lenders at a euro zone summit this month.

Tsipras faces a tough Syriza central committee session on Thursday with many activists angered by his acceptance of bailout terms more stringent than those voters rejected in a July 5 referendum.

In a clear warning to Syriza rebels, Tsipras said he could be forced to call early elections if he no longer had a parliamentary majority, and suggested an emergency party congress could be held in early September.

At the same time, he is under pressure from Greece's creditors to go beyond the two packages of so-called prior actions passed by parliament and include unpopular steps to curb early retirement and tax breaks for farmers, EU sources say.

"I know well the framework of the deal we signed at the euro zone summit on July 12," Tsipras told Sto Kokkino radio. "We will implement these commitments, irrespective of whether we agree with it or not. Nothing beyond that."

With Greece close to the financial abyss last month, the government closed the banks for three weeks and Tsipras was forced to make the major concessions on reform and austerity to open negotiations on a third bailout of up to 86 billion euros.

In a setback for government efforts to restore more economic normality, the Athens stock exchange will stay closed probably until the end of a fifth week because banks need to adapt IT systems to enforce limits on trading by Greeks.

A European Commission spokeswoman declined to say what additional measures Athens was expected to take before the conclusion of the new bailout, although she said earlier this week more reforms were due before the first aid is disbursed.

Tsipras said Greece's primary budget balance before debt service would break even at best or show a deficit this year, depending on a financial situation that has deteriorated sharply since the imposition of capital controls on June 28.

The Brussels summit agreement did not specify fiscal targets but Athens had previously been expected to achieve a primary surplus equivalent to 1 percent of annual Greek economic output this year and 2 percent in 2016.

Germany's Der Spiegel magazine reported that the creditors were willing to allow a gentler fiscal path taking account of Greece's return to recession, provided Athens pursued economic and administrative reforms more energetically.

Original Article
Source: huffingtonpost.com/
Author: Reuters