



German Chancellor Angela Merkel and French President Francois Hollande said there is no political solution to the Greek debt problem but recognized the need for a comprehensive agreement that will eventually lead to the restoration of Greek economy.

The two leaders met with Greek Prime Minister Alexis Tsipras on Thursday, on the sidelines of the European Union Eastern Partnership Summit in Riga, Latvia. The Greek PM asked for help to expedite deliberations in order to reach a comprehensive deal that will go beyond the urgent financial aid and help revive the Greek economy.

Merkel and Hollande reiterated that Athens must complete the fifth review of the bailout program and come to a staff level agreement first; then bring the agreement to the Eurogroup, table the legislative prerequisites and only then disbursement of funds can commence.

In the aftermath of the talks, the German chancellor told reporters that, “We made it clear that Athens must continue negotiations with the three institutions,” meaning the Troika of Greece’s lenders, the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF). In this context, Athens must not ask for facilitation, interventions, political solutions, detours and pressure on the ECB.

The two leaders made it clear that the only way to get funds from the EU is to start legislating reforms. “France and Germany told Greece and the Greek Prime Minister that we will gladly discuss things and support Greece whenever needed, but negotiations and the completion [of the agreement] can only be done with the three institutions, and in this respect there is still a long way ahead of us,” Merkel added.

According to the Greek government, the meeting’s positive message was that the two leaders recognized the need to expedite negotiations, that a comprehensive deal is necessary and that they will personally help if need be.

However, Merkel and Hollande did not set a timeframe for the agreement, as Athens was hoping. With Greece facing a serious liquidity problem — as the deadline of the next IMF repayment is looming — the Greek Prime Minister got much less than he was hoping for from the Riga summit.



