Reconciliation: Greece and the EU?

The European Union has two billion euros ready for Greece to use in projects that would boost the country’s economic growth potential, cut youth unemployment and help the poorest citizens, European Commission President Jean-Claude Juncker said.

The Commission has already set up a team of officials to help Greece absorb the money as part of its efforts to help alleviate what Greece’s Prime Minister Alexis Tsipras calls a “humanitarian crisis” after years of recession, Juncker said.

New Greek Prime Minister Alexis Tsipras and German Chancellor Angela Merkel, the bloc’s main paymaster, offered somewhat divergent understandings of how much Athens must do and how quickly. But EU officials insisted there was a broad agreement to act now on an accord struck a month ago.

Merkel said Greece, which faces a cash crunch within weeks, would receive fresh funds only once its creditors approve the comprehensive list of reforms Tsipras promised to present soon.

But she signaled some flexibility on what reforms Tsipras would have to make — crucially giving his leftist-led coalition the chance to offer alternative savings strategies that will help it persuade its voters it is breaking with what Tsipras calls the failed austerity policies of his defeated predecessor.

Tsipras said he would fully respect a deal struck with euro zone finance ministers on Feb. 20 that extended an EU bailout deal until June. But he insisted that a condition in that pact requiring Athens to pass a final review of its efforts to bring its debts under control before receiving funds did not apply.

The risk of a continued standoff, exactly a month after Greece secured a last-gasp four-month extension of an EU/IMF bailout, was highlighted by comments from Merkel and Tsipras.

“The agreement of Feb. 20 is still valid in its entirety. Every paragraph of the agreement counts,” Merkel told German journalists who questioned whether she was now offering cash for promises that many of her supporters have stopped believing in.

Tsipras appeared to differ. “It is clear that Greece is not obliged to implement recessionary measures,” he said. “Greece will submit its own structural reforms which it will implement.

Tsipras had indicated he could offer a full package of reforms within a week or 10 days.

Nonetheless, with some German leaders saying they might prefer Greece out of the euro zone, and Tsipras trying to satisfy a coalition of radicals unused to power, senior EU officials do not rule out a further collapse of the process.

Crucial for the Greek leader, EU officials believe, is being able to present his package as a break with his conservative predecessor — even if many of the measures are broadly similar.

A German comedian has sparked confusion after claiming that he faked a controversial video apparently showing Greek Finance Minister Yanis Varoufakis raising his middle finger to Germany.

Satirist Jan Boehmermann said he doctored the video, which caused controversy after airing on German TV.

But he later said the clip had been taken out of context.

Mr Varoufakis denies making the sign. The row comes ahead of crucial talks between Greece and EU leaders.

Merkel and Tsipras

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