Yesterday KTG reported on Germany’s plan to establish an escrow account where apart from bailout tranches also revenues from tax and V.A.T. collection would be deposited. Even though Schaeuble’s proposal has been rejected by the Greek government, Berlin seems adamant to take the country’s finances under control.
Financial Times: German-backed plan for Greek Bailout
“The German government is urging “compulsory” hiring of outside experts to help collect taxes, fight corruption and privatise government assets in Greece in return for agreeing an overhauled bailout that would include two more years of EU aid for Athens.
The measures would go further than ever before in asserting international control over Greek budgetary decision-making.
The proposals, which EU officials said have support in France and the European Commission, would also require automatic, across-the-board spending cuts if Greece veered off the bailout’s revised deficit targets, according to a copy of the plan obtained by the FT.
“It’s a tough proposal, but it is realistic,” said one senior European official involved in the negotiations. However, the International Monetary Fund remains sceptical of the measures.” (Read Full Article in Financial Times)
PS Irony of the German plans’ relevation coincidence: On October 28th, Greece celebrates National “No-Day” (Oxi Day 28 October 1940),when Athens denied access of Axis forces to enter Greek territory and occupy certain unspecified “strategic locations” or otherwise to face war.
I think the German plan is a good one regarding the Escrow account. It may be insulting at first, but overall I think Greek people will appreciate it when they see the money going for the purposes it was intended if the Germans take over management.
Sadly, unless there are foreign overseers, I see little change to occur. Let’s try it before we poo-poo it.
What an absolute load of rubbish. The money the Greek people suffer very hard for to raise should go to the recovery of Greece, not to the recovery of the gambling debts of foreign banks. Under German supervision or any other way! these “overseers” are not suggested to help put Greece back on its feet, they are suggested to ensure that the Greek people (and others) pay for the gred of others, nothing else!
Once Greece is back on it’s feet, it’s people are back working, it’s health care reinstated, it’s social security system reinstated, it’s society healed from the damaged done through the MoU, then Greece should start looking at paying debt that is not odious debt. And that’s not too much of what they (and the Irish, Spanish, Portuguese etc.) are being fleeced for now.