Greek PM demands EU stop 'unilateral actions' as tensions flare

By  <http://blogs.reuters.com/search/journalist.php?edition=us&n=costaspitas&;> 
Costas Pitas and  
<http://blogs.reuters.com/search/journalist.php?edition=us&n=caroline.copley&;> 
Caroline Copley

ATHENS/BERLIN Wed Mar 18, 2015 1:59pm EDT         

 

Greek Prime Minister Alexis Tsipras gives a statement at the European 
Parliament in Brussels, March 13, 2015. 

Credit: Reuters/Eric Vidal

 

[ANTIC.org-SNN] 

ATHENS/BERLIN (Reuters) - Greek Prime Minister Alexis Tsipras lambasted 
European partners on Wednesday for criticizing a new anti-poverty law hours 
before it is voted on, saying it was the  
<http://www.reuters.com/subjects/euro-zone> euro zone rather than Athens that 
must stop "unilateral actions" and keep its word.

Tsipras's impassioned speech to parliament as it prepared to vote on his 
government's first bill marked the latest escalation in a war of words between 
Athens and its creditors that has raised the risk of a Greek bankruptcy and 
euro zone exit.

European Council President Donald Tusk called a meeting on Greece for Thursday 
evening at Tsipras' request on the sidelines of an EU summit with the leaders 
of Germany, France, the European Central Bank, the European Commission and the 
chairman of euro zone finance ministers.

The leftist Greek leader is pressing for a political decision to break Greece's 
cash crunch, while the creditors have insisted Athens must first start 
implementing previously agreed economic reforms and hold detailed talks on its 
financial plans.

Tensions over Greek flip-flopping on the terms of a bailout extension agreed 
last month flared again after an EU official wrote to Athens urging more talks 
with lenders on the bill before the vote. 

The letter told Tsipras's leftist government to hold further talks with the EU 
on the bill or risk "proceeding unilaterally" against the terms of a Feb. 20 
accord that extended the bailout and staved off a Greek banking collapse.

European Economics Commissioner Pierre Moscovici denied the EU was trying to 
stop Athens from passing the law but that the official had been correct to 
remind the Greek government to consult with lenders first.

"The European Union as a whole wants  <http://www.reuters.com/places/greece> 
Greece in the eurozone," Moscovici said, but added that the February deal must 
be respected. "Greece must stay in the euro zone... but at these conditions."

An indignant Tsipras defended the so-called "humanitarian crisis" law - which 
offers food stamps and free electricity to the poor - as the first bill in five 
years drawn up in Athens rather than ordered by EU technocrats.

"If they're doing it to frighten us, the answer is: we will not be frightened," 
Tsipras told parliament. "The Greek government is determined to stick to the 
Feb. 20 agreement. However, we demand the same from our partners. Let them stop 
unilateral actions, respecting the agreement they signed."

The bill was approved in principle by lawmakers before a formal vote later on 
Wednesday, when it is expected to pass by a wide margin with opposition support 
as well. 

Members of the governing Syriza party said the remarks by the head of EU 
delegation to Greece Declan Costello were "an intervention in the legislative 
process that is an insult to all of us," in a letter of complaint read out in 
parliament.

Tsipras continued his attack against "EU technocrats" over the letter.

"The behavior of some, not all, of our partners and especially some of the 
technocrats and technocrat teams only confirms the arguments of the Greek 
side," Tsipras said. 

"What else can one say to those who have the audacity to say that dealing with 
a humanitarian crisis is a unilateral action?"

European Commission President Jean-Claude Juncker said he was concerned about 
the pace of progress on resolving Greece's debt crisis and urged those involved 
to "get a grip".

"I'm still worried. I'm not satisfied," he told a news conference. "I'd like 
everyone to get a grip on themselves."

"TIME RUNNING OUT"

The latest comments come as Greece risks running out of cash in weeks amid a 
widening rift with its creditors. Technical teams from Greece and its 
international lenders started talks last week to try to agree details of 
reforms, but have made little progress so far.

"We have the impression, and everyone who is dealing with the question shares 
the impression, that time is running out for Greece," German Finance Minister 
Wolfgang Schaeuble, said in Berlin, noting that Athens was refusing a third 
bailout package.

Shut out of debt markets and with financial aid frozen by irate lenders, Athens 
needs to quickly find new funding. Tsipras will raise the problem in talks with 
EU leaders at this week's summit, his government said. 

But EU officials said they did not understand what Greece hoped to achieve by 
bringing the issue to the summit, where it is not on the formal agenda and 
could only be discussed on the sidelines and only in broad political terms.

In a small boost for the government, Greece sold 1.3 billion euros ($1.38 
billion) of three-month Treasury bills on Wednesday in its third successful 
auction this month. The sum covered the amount it sought to raise to refinance 
a maturing issue.

 <http://www.reuters.com/places/france> France appealed for restraint to avoid 
accidentally triggering a Greek euro zone exit.

"France will be do everything it can to avoid an accident and I believe that 
what we will do will avoid it," Finance Minister Michel Sapin said. "But no one 
can be categorical on this and this is why, on both sides, people must control 
their language."

(Additional reporting by George Georgiopoulos, Renee Maltezou and Karolina 
Tagaris in Athens,  
<http://blogs.reuters.com/search/journalist.php?edition=us&n=alastair.macdonald&;>
 Alastair Macdonald and  
<http://blogs.reuters.com/search/journalist.php?edition=us&n=jan.strupczewski&;> 
Jan Strupczewski in Brussels, Yann Le Guernigou in Paris, Writing by Deepa 
Babington; Editing by Dominic Eand Paul Taylorvans)

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