If you didn’t know what the standoff over Greece’s bailout was all about, Alexis Tsipras, the new Greek prime minister, has provided an excellent primer in a letter sent a week ago to his German counterpart, Chancellor Angela Merkel, who he is scheduled to meet Monday night in Berlin.
Our story about the March 15 letter, which the FT obtained a copy of, can be found here. But as is our normal practice, we thought we’d provide readers of the Brussels Blog a bit more detail – including a copy of the letter, which we’ve posted here.
It’s worth noting that eurozone officials say a similar letter was sent to a select group of other leaders, including François Hollande, the French president; Mario Draghi, the European Central Bank chief; and Jean-Claude Juncker, president of the European Commission.
For those who are having a hard time following every twist an turn in Tsipras’ dispute with his bailout lenders, the letter is filled with a lot of jargon and references to multiple previous exchanges of letters, which can be confusing even to a Greek crisis veteran. For that reason, below is an annotated version of the Tsipras letter, which is our modest attempt to explain its intricacies to the uninitiated.
The letter starts off by referring to a February 20 agreement by the eurogroup – the committee of all 19 eurozone finance ministers which is responsible for overseeing the EU’s portion of Greece’s €172bn bailout. That was the meeting where ministers ultimately agreed to extend the Greek bailout into June; it was originally to run out at the end of February, and the prospect of Greece going without an EU safety net had spurred massive withdrawals from Greek bank deposits, which many feared was the start of a bank run. Read more