ATHENS, (Reuters) – Greece’s new leftist government opened talks on its bailout with European partners yesterday by flatly refusing to extend the programme or to cooperate with the international inspectors overseeing it.
Prime Minister Alexis Tsipras’ government also sacked the heads of the state privatisation agency after halting a series of state asset sales.
The politically unpopular policy of privatisation to help cut debt is one of the conditions of Greece’s 240-billion-euro bailout that has imposed years of harsh austerity on Greece.
Finance Minister Yanis Varoufakis met Jeroen Dijsselbloem, head of the euro zone finance ministers’ group, for what both men described as “constructive” talks.
But Greek media seized on signs of frosty body language between them and the hour-long meeting appeared to do nothing to bridge the gap between them.
The meeting marks the start of Athens’ drive to persuade its creditors to ease the strict terms of the bailout. It precedes planned visits by Tsipras and Varoufakis to London, Paris and Rome next week.
Although neither France nor Italy has shown any sign of accepting the new Greek government’s demand to write off part of its 320 billion-euro debt, they have both previously called for a change of course from German-style budget austerity.
Tsipras has repeatedly said he wants to keep Greece in the euro but he has also made clear he will not back away from election campaign pledges to roll back the terms of the bailout.
His government, winner of last Sunday’s election, has raced ahead with a series of anti-bailout moves including reinstating thousands of public servants laid off by the previous government as well as cancelling privatisations.
