No agreement between the Greek government and Troika on the defense industries

Troika asks for the shut down and not consolidation programs for EAS, ELVO and LARCO, despite the arguments of the Greek government that through cuts and mergers the three companiew can operate without producing deficits. Things look better in the negotiations with the Directorate General for Competition of the European Commission.

"We need to show they are sustainable and will not burden taxpayers with deficits," a member of the economic team said after the meeting with Troika. However, he said that in the negotiations with the European Commission the two sides have found some common ground, suggesting that the EC might allow Greece to not return the 1.2 billion euros as illegal state recoveries.

Reportedly, things seem to be somewhat better for ELVO but EAS will have a new round of consultations so that the Greek government might convince the Troika that it can survive under its current production contracts too.

Regarding LARCO, the same member said that negotiations, which will continue tomorrow between TAIPED and the Troika technical teams, are being made with the privatization of the company in the background.

Another Finance Ministry official pointed out that the agreement with the Troika on the defense industries, LARCO, and for the other three prerequisites (suspension of 12,500 civil servants, repaying debts by a government to EYDAP, EYATH and Code of Lawyers), are closely linked to the 1 billion euro tranche. Although there is no final deadline, any delays in the agreement will delay the disbursement of the tranche as well, which based on the initial planning should be done in October.