Optimism amid Greek reform talks

Going into a teleconference, EU sources said Greece had satisfied the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) with reforms submitted to extend its financial program. Similar optimism was expressed in Berlin over the proposals submitted by Greece.

"I am cautiously optimistic that on Friday and today we have moved, step by step, toward a solution to the conflict," German Vice Chancellor Sigmar Gabriel said Tuesday, after eurozone finance ministers agreed to a four-month extension and the country had issued a list of proposed reforms. "We want Greece to stay in the eurozone," added the centrist Social Democrat, the deputy to Chancellor Angela Merkel.

Greek officials have promised to end austerity, which was imposed from abroad in return for an emergency financial infusion under the previous government. Many economists believe the austerity measures have exacerbated Greece's six-year recession and made growth nearly impossible. The country's leaders have scrambled to reach a solution with finance ministers from the 19-country eurozone before the current program expires Saturday.

"We want to continue to help Greece, but the condition for this is the continuation of the reform program," Gabriel said Tuesday in Berlin at a conference on Europe.

Finance Minister Wolfgang Schäuble has taken the toughest line in negotiations and even requested a vote this week in the lower house of parliament on extending the program. Last week, Germany had rejected an initial request by Greece for a four-month loan extension. Greece's proposed reforms were initially expected on Monday.

Teleconference of truth

Creditors planned a teleconference Tuesday to evaluate proposals by Greece for an extension to keep the country afloat and prevent its potentially losing the single currency. The reform plans, which included measures to deal with tax evasion and corruption, appear to have met with a favorable response both within policymaking circles and in the markets.

Spokesman Gavriil Sakellaridis said Greece had based its list of reforms on the governing Syriza party's campaign pledge to address the "humanitarian crisis" caused by the harsh austerity measures imposed by the international creditors in exchange for the 240 billion-euro ($270 billion) infusion.

Markets also seemed to believe that the Eurogroup would sign off on the reform plans and extend Greece's bailout until the end of June, a move that would allow the country to meet its financial obligations over the coming few months. The main stock market in Athens was up 7 percent in lunchtime trading.

mkg/rc (Reuters, AFP, dpa, AP)