Dear President and Managing Director,
The attached proposal for a comprehensive and specific reform agenda by the Minister of Finance of Greece – aimed at complementing the request for a loan facility from the ESM of July 8 2015 – is conveyed to you following the Euro Summit decision of July 7 2015.
In this context, it will be assessed by the three institutions to be presented to the Euro Group. It constitutes the result of many months of formal and informal negotiations that the Greek government undertook with the institutions at all levels, aiming at reaching a program that will be economically viable and socially just.
With this proposal, the Greek people and the Greek government, confirm their commitment to, fulfilling reforms that will ensure Greece remains a member of the Eurozone, and ending the economic crisis. The Greek government is committed to fully implementing this reform agenda – starting with immediate actions – as well as to engaging constructively on the basis of this agenda, in the negotiations for the ESM Loan.
This reform agenda constitutes part of the wider effort of the Greek Government, towards reforming the Greek economy and public administration, through fighting corruption, clientilism and inefficiency, promoting social justice and creating a positive environment for sustainable economic growth. Thanking you for our cooperation,
What is left unsaid: any debt haircut requests (recall just on Sunday night Tsipras requested a 30% debt haircut in line with the IMF’s debt sustainability proposal), and any mention of the Greek referendum which Tsipras personally called two weeks ago to the day to reject precisely the proposal he is now presenting.
As for Greece being “fixed”, while a deal may get done this weekend, one thing is certain – if and when the ECB hikes its ELA and lowers its collateral haircut to give Greek banks more breathing room, any and all freed up deposits will be promptly withdrawn within minutes by the local population which won’t fall for the same trap twice, until Greek banks have zero deposits and the entire Greek banking system is one giant Eurosystem liability.