A visit by Greek Foreign Minister Nikos Kotzias to Turkey this week has given fresh hope of progress in relations between Athens and Ankara.
Monday’s Eurogroup produced a lukewarm statement on the state of Greece’s negotiations with its lenders that Athens hopes will be enough to avert any decision from the European Central Bank that would further restrict liquidity to local lenders but which is unlikely to suffice for Frankfurt to lift the T-Bill cap for the Greek state and banks.
The Greek government’s multi-pronged approach to energy issues has been in focus over the past few days after the US State Department sent Special Envoy and Coordinator for International Energy Affairs Amos Hochstein to Athens on Friday to convince Athens that it should concentrate its efforts on the Trans Adriatic Pipeline (TAP) and not on extending the planned Turkish Stream pipeline through Greece.
The Greek government will be looking towards Monday’s Eurogroup for some kind of positive indication regarding the state of its negotiations with lenders but expectations for any kind of notable statement are extremely low.
A joint statement by European Commission President Jean-Claude Juncker and Greek Prime Minister Alexis Tsipras on Wednesday may prove a pivotal moment in the new government’s relationship with its creditors but still leaves a lot of work to be done in the next few days.
The Greek government appears confident that a meeting of the European Central Bank’s governing council today will not result in a greater haircut being applied to the collateral provided by Greek banks seeking emergency liquidity (ELA).
The Greek government is due to launch a new effort on Tuesday to overcome its liquidity problems as talks with its lenders still look far from being concluded and have been complicated by the International Monetary Fund reportedly stressing the need for debt relief from the official sector.
Greece’s opposition parties are among those that will be watching very closely over the next few days to see whether the government is able to reach an agreement with the institutions. The state of negotiations will play a crucial role in developments at New Democracy and PASOK.
Negotiations between Greece and its lenders are to continue for a second day on Friday, with Athens hoping that a positive outcome at the Brussels Group could lead to the government’s liquidity crisis being overcome quickly.
The leaders of Greece, Cyprus and Egypt signed the Nicosia Declaration on Thursday, aiming at strengthening relations between the three countries.