Yes to new aid, but gray smoke for debt reduction. This is what emerged from the Eurogroup meeting on the future of Greece: the finance ministers of the 27 EU countries have given the go-ahead for the disbursement of a new tranche of aid worth 8,5 billion, a sum higher than the 7 expected up to a few days ago. The check from Brussels will allow the Greek government to honor the 6,5 billion debts (with the ECB and the Monetary Fund) due in July, while the rest of the treasury should be used to repay part of the state's arrears with private some liquidity circulating in the economy. The Eurogroup has also revised - somewhat downwards - the budgetary target for the country: Greece has committed itself to achieving a primary surplus equal to 3,5% of GDP up to 2022 while for the following years up to 2060 the bar is lowered around 2%.
The bad news is that a definitive solution to the country's debt relief, which reached a stratospheric 179% of GDP, has been delayed yet again. The Greek premier was convinced that he was entitled to the discount after having with difficulty obtained from Parliament the ok to the umpteenth blood and tears maneuver requested by the former Troika, a drain on 4 billion between new taxes and fewer pensions. It didn't happen that way. The feeling is that Germany does not want to give Athens any gifts before the German elections on September 24th.
