Greek Prime Minister Alexis Tsipras is seeking a realistic deal with creditors that will leave both sides satisfied amid voices within SYRIZA that call for a rift with the European Union. He even says that if the agreement is not voted by the SYRIZA-ANEL coalition, he may resort to elections. Tsipras insists on a political solution and will meet with German Chancellor Angela Merkel, French President Francois Hollande and European Commission President Jean-Claude Juncker on the sidelines of Thursday’s EU summit. Negotiations on a technical level are starting again on Monday in Brussels but they are progressing slowly, while there are concerns that it is very likely Athens will not be able to make the scheduled 1.5-billion-euro installment payment to the International Monetary Fund (IMF) in June, starting with a payment of 300 million on June 5. However, the Greek premier insists that the “red lines” in pension reforms and labor market regulations will not be crossed. At the same time, Athens is making concessions on the value added tax raise and tax system reforms. Tsipras has asked the Greek negotiating team to rush for a staff level agreement on Wednesday so that he can go to Thursday’s summit with solid proposals in his hands. If a staff level agreement cannot be reached, there should at least be convergence on most issues. The Greek PM will seek an emergency Eurogroup before the end of May so that the European Central Bank (ECB) unlocks liquidity and creditors release further financial aid. Tsipras is receiving criticism from within his party, especially from the hard leftists, who believe that the government should not leave its pre-election pledges behind and cross the red lines in negotiations. They suggest that Greece must default and come to a rift with creditors and Europe in general. The SYRIZA hardliners tell Tsipras to change his strategy and seek financial support from other sources. They believe that creditors try to humiliate Greece and the leftist government. Tsipras has allegedly replied that he prefers to have a political crisis within SYRIZA instead of leading the country to economic destruction. He stated that if the agreement is not voted by the majority of the SYRIZA-ANEL coalition, he is willing to go to elections.
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