In Brussels, high-stakes negotiations are set to continue on Wednesday between Prime Minister Alexis Tsipras and his French and German counterparts on the sidelines of EU-Latin American and Carribean summit in an effort to reach a breakthrough in the slow-moving talks.
The Greek delegation will be consisted by minister of state Nikos Pappas, prime minister Alexis Tsipras’ closest ally, Euclid Tsakalotos, the Oxford-educated economist, government spokesman Gabriel Sakellaridis, the PM's consultant on diplomatic affairs Vangelis Kalpadakis and deputy defense minister Kostas Isychos.
All eyes turn to the meetings between Greek PM Alexis Tsipras, German Chancellor Angela Merkel and French President Francois Hollande; the three leaders are expected to meet face-to-face after 9pm, while Tsipras will also meet with other senior EU officials.
As time is running out for Greece to reach a deal to unlock crucial rescue funds Tsipras is sticking to his ‘red lines’.
The updated proposals submitted by the Greek government to lenders included an increase in the primary surplus targets.
“We have covered half the distance concerning primary surplus. We are expecting the institutions to cover the other half” his office said in a statement.
The Greek side continues to back the idea of three value-added tax rates, although it may raise the two lower brackets from 6.5 to 7 percent and 11 to 12, or even 13, percent.
Abolishing the social solidarity grant provision (EKAS) has also been ruled out by the government.
Nevertheless Greece is willing to compromise to reach a deal with its EU/IMF creditors that is acceptable to both sides and is ready to negotiate. Sources close to the Prime Minister affirm that the government's aim is “to reach an agreement beneficial for all sides” adding that “we have shown a strong political will towards reaching a deal, and averting a eurozone rupture”.
Meanwhile Alexis Tsipras has met on Tuesday with top members of his Syriza party, urging them to support him at this critical time while he maid clear that he is not planning to call fresh elections.
Within Syriza though, there is the so-called “left platform” which is uncomfortable with a deal that will not meet the party's anti-austerity commitments; members of the left platform do not exclude the possibility of elections.