German Chancellor Angela Merkel, French President François Hollande and Greek Prime Minister Alexis Tsipras had a meeting on Thursday on the sidelines of Eastern Partnership summit in Riga.
The negotiations took place in a “friendly and constructive atmosphere” and focused on “the successful fulfillment of the current program,” according to a common statement issued by the French and German governments separately. Germany’s spokesman added that Merkel, Hollande and Tsipras agreed to stay in close contact, and also agreed that Greece should keep negotiating with her creditors.
The two hour meeting ended shortly before 1 a.m. with no indication of a major breakthrough that will unlock bailout funds and ensure Greece’s future in the euro zone.
Tsipras briefed Merkel and Hollande on talks between technical teams from Greece and its international lenders and raised the issue of liquidity. Tsipras expressed confidence in reaching agreement, securing a long-term deal and creating a viable investment plan to complement these efforts.
While the three leaders agreed “significant progress” had been achieved, “open issues” remain, according to a senior Greek government official. These include pensions, labor market reform, VAT rates and targets for a primary budget surplus. “But the hurdle remains that any deal must be agreed with all the three institutions, including the International Monetary Fund,” the Greek official told reporters.
Süddeutsche Zeitung, one of Germany's biggest newspapers, has recently reported that euro zone countries considered extending Greece's bailout program until Fall. Nevertheless the possibility of extension wasn’t discussed during the meeting. “If it is brought up as an issue, we could look into it,” the Greek official said.
According to the Reuters Labor Minister Panos Skourletis has pointed to June 5 - when Greece's next loan payment to the IMF falls due - as the next crunch point for the cash-strapped country. But the Greek government aims for a deal to be reached by then.
European Commission President Jean-Claude Juncker didn’t attend the meeting, he will meet with Alexis Tsipras on Friday afternoon, after the EU summit.