Friday 13 February 2015 06.31

Italys Prime Minister Matteo Renzi (L), Greek Prime Minister Alexis Tsipras and Taoiseach Enda Kenny at the EU summit in Brussels

Taoiseach Enda Kenny has said that officials from the EU, ECB and IMF troika will hold talks with Greek negotiators over the weekend on a possible preliminary debt deal.

Any plan would then be brought to EU Finance Ministers who are scheduled to meet on Monday.

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The Taoiseach said Mr Tsipras told EU leaders that he believed they had to recognise the change of government in Greece but also that he accepted contracts had to be honoured.

Speaking to RT News in Brussels, Mr Kenny said Mr Dijsselbloem warned this weekends talks would be very complicated and complex.

Any plan would then be brought to EU Finance Ministers who are scheduled to meet on Monday.

Asked if the Greek bailout would be extended, Mr Kenny said the Greek Prime Minister declared he wanted to find common ground and it was on that basis that the technical experts will work.

Mr Kenny added that Mr Tsipras gave a commitment that he did not want to see any contracts broken and EU leaders showed a very strong willingness to work with Greece.

The negotiating process was agreed between the Greek Prime Minister and the President of the Euro group Jeroin Dijsselbloem at the summit in Brussels.

The Taoiseach said Mr Tsipras told EU leaders that he believed they had to recognise the change of government in Greece.

The agreement to have talks with the Troika came less than 24 hours after euro zone finance ministers failed to agree on a statement on the next procedural steps because Athens did not want any reference to the unpopular bailout or the Troika of lenders enforcing it.

Mr Tsipras won the election last month promising to scrap the 240 billion bailout, end cooperation with the Troika, reverse austerity measures that have cast many Greeks into poverty and negotiate a reduction in the debt burden.

ECBs Governing Council extends cash lifeline

The procedural step forward came after the ECBs Governing Council extended a cash lifeline for Greek banks for another week, authorising an extra 5bn in emergency lending assistance (ELA) by the Greek central bank. The council decided in a telephone conference to review the programme on 18 February.

Timing the review right after euro zone finance ministers meet again next week keeps Athens on a short leash.

The ECB authorised the temporary funding expedient for banks last week when it stopped accepting Greek government bonds in return for liquidity.

Arriving for his first European Union summit, Mr Tsipras told reporters: Im very confident that together we can find a mutually viable solution in order to heal the wounds of austerity, to tackle the humanitarian crisis across the EU and bring Europe back to the road of growth and social cohesion.

Mr Kenny said before the summit that the EU wanted to help Greece but that assistance would come with certain conditions.

Mr Kenny said todays informal EU leaders summit was an opportunity to listen to the new Greek Prime Minister and hear what he has to say about dealing with his countrys debt.

He stressed that EU leaders were willing to work with the Greek government but cautioned that would be under what he termed certain restraints.

Asked about the failure of finance ministers to agree on a timetable for talks on Greek debt, Mr Kenny said: Obviously the meeting didnt conclude in the way people might have thought.

That is why its important to listen to the prime minister himself.

Chancellor Angela Merkel, vilified by the Greek left as Europes austerity queen, said Germany was prepared for a compromise and finance ministers had a few more days to consider Greeces proposals before next Mondays meeting.

Europe always aims to find a compromise, and that is the success of Europe, she said on arrival in Brussels.

Germany is ready for that. However, it must also be said that Europes credibility naturally depends on us respecting rules and being reliable with each other.

The two leaders came face-to-face for the first time in the EU Council chamber.

According to Greek aides, a smiling Ms Merkel congratulated Mr Tsipras on his election and said: I hope we will have good cooperation despite the difficulties. Mr Tsipras smiled back and replied: I hope so.