20-04-15

Dombrovskis hopes for agreement with Greece at meeting in May

cep economist Matthias Kullas warns, however, European institutions are well advised to prepare themselves for a Greek payment default

EU Commission Deputy Dombrovskis with IMF head Lagarde

European Commission Vice President Valdis Dombrovskis told Bloomberg in an interview that an agreement between Greece and its international creditors will likely come about only next month and not at this week’s Eurogroup meeting in Riga. “The Riga Eurogroup meeting will be a chance to take stock of talks,” Dombrovskis said. “Hopefully Greece will be able to provide a reform package for the next meeting in May.” Meanwhile, the head of the IMF's department in Europe, Poul Thomsen, told German business daily Handelsblatt that Greece's bailout talks had gathered “a little more momentum" but the two sides needed to make "significantly more" progress. According to Thomsen, Greece could have enough money to meet debt and other commitments until June but would need to reach an agreement before then. cep economist Matthias Kullas warned, though, that the Greek government was still not willing to tackle decisive reforms. “To the contrary, the government is adopting measures which undo progress made so far,” Kullas said. “For this reason, the European institutions are well advised to prepare themselves for a Greek payment default.”