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Greece’s Govtt welcomes Schaueble’s proposal to “renegotiate” program if IMF out

German Finance Minister Wolfgang Schaeuble warned that new negotiation should take place with regards to Greece’s bailout program, should the International Monetary Fund ultimately decide to remain out of the program.

Speaking to German daily Sueddeutsche Zeitung, Schaeuble said

“If the IMF for some reason decides not to participate, the Europeans… will have to impose what was agreed on, obviously more effectively.”

He added that in this event, the European lenders would have to “significantly improve” the conditions agreed in a new aid program, including giving the European Stability Mechanism the duty of overseeing and supervising the implementation of the Greek program.

The German Finance Minister did not elaborate on the significant improvement of the conditions.

As Schaeuble’s proposals were spread by the media as “Fourth Bailout Program for Greece,” the spokesman of the German Finance Minister reassured later on Friday that the German FinMin was speaking about the current program.

Schaeuble’s proposal come just hours after the IMF in Washington reiterated it had not decided yet about its role in the program.

‏Skai TV Correspondent @KaterinaSokou 21h21 hours ago
IMF spokesman says participation in Greek program “still possible”, sees no medium term financing needs that might lead to renewed crisis

In the regular briefing, IMF spokesman Jerry Rice said that with 3.5% Primary Surplus target, additional austerity measures were inevitable. Some Greek media claimed that the IMF would demand measures of 4.5 billion euro for after 2018 and that these measures should be legislated in 2017.

The Greek government that considered the IMF as an obstacle for the conclusion of the second review hailed the proposal of the German finance minister.

In a non-paper issued early Friday afternoon by the Prime Minister’s office, the government “welcomed” Schaeuble’s proposal and claimed “We can without the IMF too.”

“The possibility to continue the program without the IMF or in the presence of the IMF without new funding, and therefore without a central role, is a development that may lead to end the structural problem of disagreement between the institutions as it creates a constant obstacle to conclude the program review without new measures and the successful completion of the Greek program.

The view that Europe has an institutional framework of support is not new. It constantly gains support in the European institutions, and is ultimately welcome by the Greek side, provided the initiatives and decisions are taken quickly.” the non-paper reads.

KTG said it already many times: Greek is between Scylla and Charybdis, with or without the IMF.

PS The German FinMin is Greece’s “best friend”. The Eurozone stands “united” and other nice phrases about the “European solidarity”, No?)

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3 comments

  1. You can put lipstick on a pig but it doesn’t mean it’s any less of a pig. When the Schäuble gang says that they will have to impose what was agreed on more effectively in Greece if the IMF drops out of the program, it should not be a cause for celebration in Greece. By “more effectively”, they certainly don’t mean more fairly or more rationally. They simply mean they will have to crack the whip a little more.

    When will Greece finally realize that it has neither friends nor allies in Berlin, Washington or even Brussels?

  2. Giaourti Giaourtaki

    His lawmakers voted for “only with participation of IMF” without asking IMF, so he just looks for an excuse when punk’d voters will call him a liar.

  3. The Greek people realised this a long time ago. What they have not realised is that nothing good can happen unless they get rid of the hoards of treacherous vampire politicians who feed off their blood.