Hollande told Greek Prime Minister Alexis Tsipras: "We have done everything possible to overcome the crisis in the Eurozone… kept Greece within Europe and secured Europe to Greece."
Welcoming French President @fhollande to Maximos Mansion #Greece pic.twitter.com/RUDoxs3jUH
— Alexis Tsipras (@tsipras_eu) October 23, 2015
However, referring to the major fiscal changes attached the Greece's third bailout by its creditors he said:
"There were reforms to be made and the Greeks adopted them. There are others to be made and it is in within this framework that there should be a relaxation of the burden of debt, because if there is no negotiation on this subject — which is so important — then Greece will not return to the path of growth."
This is the first time a Eurozone leader has stepped into the arguments following the bailout agreement in August, in which the creditors — the 'Troika' of the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) — demanded significant reform to the Greek fiscal system.
These included a significant widening of taxation, major reforms of the over-generous pension system, the privatization of infrastructure and major cuts in public spending. It was on an anti-austerity platform that Tsipras won the general election in January and again in September.
The French president said a renegotiation of the debt was not about the "weight of the debt as such" but interest charges that must be "carried forward in time without costing anything to European taxpayers." In other words, a restructuring of the debts to allow Greece time to let the economy grow, without being hampered by short-term massive repayments.
'Very Hard Battle'
However, the bailout conditions were Friday under further discussions by the Troika, who were joined by officials from the European Stability Mechanism (ESM). The talks — which began Wednesday — have been described by Olga Gerovasili, a spokesperson for the Greek government, as a "very hard battle" with the institutions.
Will Hollande use Greek trip to remind #Tsipras that strong, independent watchdogs are crucial to economic success? Don't hold your breath.
— Pierre Briançon (@pierrebri) October 23, 2015
It emerged that — as part of the bailout deal — the Troika and the ESM are demanding even more concession from Athens. At issue is the state of the Greek banks which were severely weakened when people withdrew savings in the first six months of the year.
The creditors are believed to be demanding touch conditions as well as lending Greece as little as possible to bail out the banks.
Hollande hinted at the need for lenience: "I think France, with others, has made it clear to all the countries of the euro area it was our common interest, our duty of solidarity to want Greece to remain in the area euro.
"We have a human connection, cultural and civilizational, with Greece."
