Greek Prime Minister Alexis Tsipras
and the German Chancellor Angela Merkel have struck conciliatory tones
at their Berlin summit, but remained vague on how to prevent Athens from
running out of money.
Mrs Merkel said she wanted to see the Greek economy grow.
Mr Tsipras said it was better to talk with each other than about each other.
Both countries have been at odds over Greece's efforts to renegotiate the terms of its international bailout.
"We
want Greece to be strong economically, we want Greece to grow and above
all we want Greece to to overcome its high unemployment," the German
chancellor said at a press conference mid-way through talks that are due
to continue over a working dinner.
She said both countries approached the talks as partners in the EU as well as Nato, facing the same geopolitical challenges.
As
one of 19 eurozone countries Germany was in no position to decide
whether Greece's reform programme was appropriate or not, she said. An
institutional framework to assess this was in place, she added.
Mr Tsipras noted that it was almost five years since the start of the
Greek bailout, which required massive fiscal adjustments in his
country.
"It has not been a success story," he said citing a 25% loss in GDP and 60% youth unemployment.
He
stressed the need for dialogue. "It must be our priority to break the
stereotypes that have been created over the past few years. Neither are
the Greeks lazy, nor are the Germans responsible for all the ills that
take place in Greece," he said.
Instead, he added, both countries should work together to fight corruption, which was "continuing to hold Greece back".
Mrs
Merkel said that although some issues were going to be discussed in
more detail over dinner, there would not be any new commitments.
The summit comes after a pledge from the European Union (EU) to provide €2bn (£1.45bn) to Greece to ease what it called the country's "humanitarian crisis".
European Commission President Jean-Claude Juncker said the €2bn fund would be spent on growth and "social cohesion" in Greece.
But Mrs Merkel said on Friday there would be no new money without reforms.
Mr Tsipras has pledged to end austerity, but so far, his plans have met resistance from Greece's EU creditors.
At
last week's EU summit, Greece promised to meet creditors' demands to
present an economic reform package within days to unlock the cash it
needs to avoid leaving the euro.
According to the Financial Times, Mr Tsipras wrote to Mrs Merkel on 15 March outlining Greece's precarious financial position.
In
the letter, he wrote that Greece faced a short-term cash-flow crisis
and might have to choose between paying pensions and wages and meeting
debt obligations.
Mr Tsipras seems clear which option he would
choose, writing that to add to Greece's social crisis was "a prospect
that I will not countenance".
Greek proposals so far
Combat tax evasion
Tackle corruption
Commit not to roll back already introduced privatisations, but review privatisations not yet implemented
Introduce collective bargaining, stopping short of raising the minimum wage immediately
Tackle Greece's "humanitarian crisis"
with housing guarantees and free medical care for the uninsured
unemployed, with no overall public spending increase
Reform public sector wages to avoid further wage cuts, without increasing overall wage bill
Achieve pensions savings by consolidating funds and eliminating incentives for early retirement - not cutting payments
Reduce the number of ministries from 16 to 10, cutting special advisers and fringe benefits for officials
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