Greek program Review, Debt Relief, participation of International Monetary Fund in Greece’s program. Key words for a temporary solution that would allow Greece to receive a bailout tranche and avoid default to its lenders. However, the key players, Greek government, Germany and the IMF still have not found a formula of agreement.
Germany want the participation of IMF but no debt relief, the IMF wants debt relief and lower Primary Surplus targets or more austerity measures, the Greek government wants so much measures as agreed in July 2015 with the European creditors and a Review conclusion before Greek Orthodox Easter on May 1st.
On the sidelines of the IMF Spring meeting in Washington, German Finance Minister Wolfgang Schaeuble said that a review agreement might be achieved in 2 weeks and stressed that the participation of the IMF in the bailout program for Greece was necessary. He said that “funds without the IMF are not legally possible in Germany” as the participation of the IMF is a condition for the approval by the German Parliament.
“The participation of the IMF in the bailout program is part of the agreement,” he said. Asked, it that means a financial participation of the IMF, he said “yes,” Reuters notes.
He categorically rejected a debt relief and insisted that the Greek debt is sustainable.
“If Greece is fulfilling all its commitments than the debt sustainable analysis will come to the conclusion that debt is sustainable” Schaeuble said. Accordant to German n-tv.de, he referred to the already very long repayment terms and the interest exemptions for up to ten years.
On its part the IMF through Christine Lagarde said that “the IMF remains ready to support economic program based on sustainable realistic measures and medium-long-term fiscal targets.”
How will this be possible? According to state broadcaster ERT TV correspondent in Washington the IMF was annoyed by the way Poul Thomsen’s statements were interpreted in Greece.
IMF: Thomsen did not defend the new measures. He said that he considers that the target of 3.5% [Primary Surplus] as difficult and that it requires great austerity.
In charge of IMF’s European program Poul Thomsen said on Friday that the IMF considers 3.5% Primary Surplus unachievable on long-term, and that the IMF would accept if it comes for the IMF’s participation thus with more austerity measures.
“Great austerity” without new measures? the IMF may have the answer to this and it may be willing to disclose it for us, mortal humans, as well.
Tsipras under pressure
Greek Prime Minister Alexis Tsipras refuses to accept additional austerity measures other the ones Greece and its lenders agreed upon in July 2015.
In an interview to ERT TV, Tsipras said that “the July agreement did not provide neither wages cuts nor layoffs,” and stressed that “We will stick to the agreement by the book, this agreement does not foresee cuts in main pensions and there will be no cuts in main pensions.”
While the disagreement between Germany and the IMF puts Alexis Tsipras under immense pressure, the pressure inside the country is not less. Main opposition party New Democracy and its leader Kyriakos Mitsotakis repeats 100 times per day that “this SYRIZA government is incapable” and new elections should take place so that neoliberal Mitsotakis can save the country – that is: agree with and sign all creditors and IMF demands right away.
Sunday newspaper Real News front page: Tsipras “threatens with resignation”.
According to the newspaper, Tsipras told French President Francois Hollande during their extraordinary meeting on Wednesday, that he would “resign if the measures we agreed upon do not apply.”
The Prime Minister’s office dismiss the newspaper claims.
PS I see Schauble – Lagarde pl;aying ping pong with a Greek ball.
Another liar for hire, the by German Scheisstag voted deal was that Greece must say “yes” to the participation of the IMF and as Greece was strongly condemning the IMF it was never discussed that the IMF might not join. The problem is that in Germoney it was sold wrong and at least this means that the German government has to resign because of betraying voters and lying to the parliament. But after helping Erdogun to criminalize German comedian Bohmermann Merkel will have problems to reach the summer break; she might get a majority vote regarding refugee-crisis but not for killing freedom of speech and kneeling to a mass-murderer who swaggers in public with the killing of 5000 Kurds (since 2015).
What a puppet show. 3 actors working toward the same result put on a pantomime.