German Finance Minister Wolfgang Schaebule keeps reiterating his approach to the Greek Debt Relief issue and it seems that nothing will persuade him to change position.
In an interview to German daily General Anzeiger, he warned that “Greeks should not believe that they can halt the reforms and insisted for one more time that Debt Relief discussion should begin after 2018.
“Let us take as an example the development in Spain. Italy will have positive development in the economy. The Greeks also do progress, but they should not believe that they can stop the agreed reforms, ” he said adding that at the Eurogroup on October 10th, he told Greek Finance Minister Euclid Tsakalotos that “if Greece does not deliver, new austerity measures will come.”
Regarding the IMF’s refusal to continue its participation in the Greek program, Schaeuble noted that “this is a misunderstanding” and that he does not intend to clash with the IMF.
“The IMF doubts – and this is not new- that Greece will implement what it has committed to do and that this is enough for the country to march on a path of continuous growth. In contrast, Greeks repeat: we will make it. That’s why we agreed last spring that Athens would take additional austerity measures if the IMF’s pessimism confirms.”
He repeated that there can not be discussion on Debt Relief before the 3. bailout austerity program ends in 2018, “as such discussion will weaken Greeks’ appetite for reforms.”
PS I didn’t know that Schaeuble was able to adjust realities according to his own point of view. The IMF’s pessimism is based on other standards.
But one cannot argue with a 3-meter thick stone wall.
