Germany has urged Greece to follow Ireland's example in how it retooled its bailout programme after the last general election rather than trying to reinvent the reform wheel.
Ahead of today's first meeting between new Greek prime minister Alexis Tsipras and German chancellor Angela Merkel, Berlin officials warned Athens not to even consider tinkering with the legal framework of its EU-International Monetary Fund programme and the co-ordinating troika.
But senior Berlin officials said they were open to certain programme measures being replaced by others, once the headline fiscal targets are met.
"In Ireland, after elections a few years ago, the new government said certain previously agreed measures would be replaced and we were able to agree new individual measures," said a senior German official. "You could for instance increase social spending and reduce defence spending and we'd be happy to look at that. It has to fit in a total concept and lead in the same direction."
Athens warned
On Tuesday, German finance minister Wolfgang Schäuble warned Athens not to question the framework of existing agreements or “everything is over”.
Senior officials in Berlin adopted a more conciliatory tone yesterday, saying there is “always a certain amount of give and take” in such discussions, with financial “wriggle room” for a country under a programme – once the Greeks understood they were haggling over details and not reconfiguring the bailout framework.
With that in mind, Germany has ruled out replacing troika institutions – the European Commission, European Central Bank and IMF – or altering the legal basis for the financial assistance. "Changing [bailout] rules would require treaties to be changed, and I see neither necessity nor occasion to do this," said the Berlin official.
With their conciliatory, cautious tone, German officials say they are sceptical about talk from Athens about replacing key elements of the programme – or seeking a bridging loan to cover financial commitments until it can present a new programme.
Stepping up the pressure ahead of today's summit, Bild splashed the revived Greek crisis on its front page: "Is our €65 billion soon down the drain?"
Over two pages inside it reprinted 35 of its most outspoken editorials, attacking Greece under headlines such as: “Will you never learn?” and “Chancellor: stop the rip-off Greeks!”
Getting in on the game, Spiegel online reposted an interview with Mr Tsipras from 2012 in which he accused Dr Merkel of "wanting to turn us into a debt colony".
Asked yesterday whether the Greek and German leaders would hold talks on the sidelines of the summit, the senior Berlin official said there were “many opportunities” for informal talks at such gatherings.
“It follows good practice for the new prime minister to seek out the longer-governing prime minister,” said the official. “I am sure no matter how they try, they will find their way to a conversation.”
In an interview with German magazine Stern ahead of last night's emergency eurogroup meeting, Greek finance minister Yanis Varoufakis suggested a debt writedown was still being sought. "If a debt can no longer be paid off then that leads to a haircut," he said. "What is critical is that Greece's debt cannot be paid off in the near future."
Importance of rules
Mr Varoufakis
was accompanied in Brussels by deputy prime minister
Yannis Dragasakis
as euro zone finance ministers convened to discuss the standoff with Greece. Speaking on his way into the meeting, Spanish finance minister Luis de Guindos, whose country was forced to seek a bailout at the height of the crisis, said “rules must be respected by all”.
