German FinMin to Greece: No Martini, No Party!

Posted by in Economy

Well, German Finance Minister Wolfgang Schaeuble did not say it exactly as the title heralds paraphrasing Clooney’s famous ad line. Speaking to German Parliament, Schaeubel warned warned on Tuesday that Greece will not be able to receive another tranche of international aid if the delayed “troika” report from the IMF, ECB and European Commission is not positive. The cuff landed on Greece’s head while Athens is struggling to materialize the austerity plan under a massive pressure from the IMF/EU/ECB-Troika. However despite the good will announcements of the Greek government, nothing really happens. Or very slowly.

Last week, negotiations between Athens and the Troika were interrupted after the international team expressed concern about the delays in controlling the state expenditures, the implementation of a common pay roll for the civil servants, the  exceptions of certain groups like tax or toll officers from the pay roll, the mergers and closing down of institutions and state-run enterprises and the consequent lay-offs, the privatizations.

Finance Minister Evangelos Venizelos reiterated on Tuesday that ” it is an urgent duty to apply the structural reforms” and added implying that they have been voted but don’t apply “We either proceed with the reforms we have committed to, or not”. Further Venizelos said that the Troika urges for the reforms and that “it doesn’t accept delays”.

At the same time government officials repeated that there will be no lay-offs from the public administration. As long as the hydrocephalus state remains big, I see no sign for cutting the state expenses in the horizon.