Greece: Alexis Tsipras’ government faces straight talking from Martin Schulz

Ahead of his visit to Greece, European Parliament President Martin Schulz says he will use “straight talking” in his first meeting with Alexis Tsipras’ government.

Martin Schulz’s visit to Athens comes amid concerns over steps by PM Alexis Tsipras to halt austerity measures.

Greek bank stocks edged back up on January 29 a day after dipping sharply as the government shelved privatization schemes required under bailout terms.

European leaders have insisted Greece must meet its debt obligations.

Alexis Tsipras has said he wants to renegotiate the terms – but insisted there will be no Greek default, which is feared may push Greece out of the eurozone.

Greece has endured tough budget cuts in return for its €240 billion ($270 billion) bailout, negotiated in 2010 with the “troika” – the European Union, International Monetary Fund (IMF) and European Central Bank (ECB).

Its economy has shrunk drastically since the 2008 global financial crisis, and high unemployment has thrown many Greeks into poverty.

Ahead of his visit, the European Parliament president told Germany’s Bild newspaper he would encourage Alexis Tsipras to clamp down on tax evasion in Greece.

However, Martin Schulz he said he would focus on “straight talking” and had “no desire” to debate fiscal plans.

Germany’s Vice-Chancellor Sigmar Gabriel also reiterated the need for Greece to respect the terms of its bailout on Thursday.

Speaking in the German parliament, Economy Minister Sigmar Gabriel said the new Greek government could not expect the rest of Europe to carry what he called their “burden”.

“People must respect the democratic decision of voters and a newly-elected government’s right to decide its course but the rest of Europe’s citizens should not have to expect changes in Greek politics to burden them,” he said.

Jeroen Dijsselbloem, the president of the Eurogroup club of eurozone finance ministers, will visit Athens on January 30.

Ahead of the dignitaries’ trips, European Commission President Jean-Claude Juncker reiterated that cancelling Greece’s huge debt was not an option.

“Greece must comply with Europe,” Jean-Claude Juncker said in an interview with French newspaper Le Figaro on January 29, stressing that “there is no question of cancelling the debt”.

“Arrangements are possible, but they will not fundamentally alter what is in place.”

In his first cabinet meeting since Syriza’s election victory, PM Alexis Tsipras insisted that his country would not default on its debts and vowed to negotiate with creditors over the bailout.

The Athens Stock Exchange fell by 9% in response to Alexis Tsipras’s remarks on January 28 as it emerged that his Syriza-led government was putting on hold major privatization projects, including the port of Piraeus and the main power company, the Public Power Corporation of Greece.

Greek stocks rebounded on January 29, with the National Bank of Greece up 6.7% and Alpha Bank up 11.8%, according to Reuters.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago