Obsessed with Grexit: ESM’s Regling: Grexit option remains

There are these officials, obsessed with Grexit. They don’t let Greeks take a breath even in the time before Christmas. One of these notorious fun-spoilers gave an interview to To Vima Sunday edition.

The chief of European Stability Mechanism, German Klaus Regling said that the possibility of a Greek eurozone exit remains if reforms are neglected and that Greece cannot remove the IMF from its economic bailout.

“There has to be a financial contribution because the IMF, according to the ESM Treaty and to the agreement in the July summit, should be part of the programme also financially,” Klaus Regling, head of the European Stability Mechanism, told To Vima weekly.

Greek Prime Minister Alexis Tsipras last week argued that the global lender’s participation was “not necessary” in the country’s third bailout, highlighting the International Monetary Fund’s “unconstructive” position in demanding tough reforms and guarantees.

But Regling warned Sunday: “If the IMF decides not to participate it could be a big problem.” “My assumption is that the IMF will participate,” he said, adding that the contribution “is likely to be small.” Tsipras’ leftist government was forced in July to back down from its anti-austerity electoral pledges and accept a three-year, 86 billion euro (S$133 billion) rescue from its eurozone partners.

“Greece has agreed to implement reforms which are necessary so that its partners can provide the financing needed and Greece can return to a sustainable economic situation,” the European Stability Mechanism chief said.

“But ultimately the possibility is always there, if commitments as a member of monetary union are not respected,” he said in reference to the so-called Grexit. (via AFP)

PS Theoretically and practically, the danger of Grexit will always be on the table unless the German conservatives Schaeuble & co go to retirement.

As many Greek households have prepared themselves psychologically and practically to spend the 3. consecutive winter without heating, their frozen brain cells hinder them from contemplating of the risks and impact of Grexit.