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Pressure in Davos: Reports claim Schaeuble wants Grexit debate in 2016

A storm is brewing over Greeks’ heads with German Finance Minister Wolfgang Schaeuble to insist on Grexit? According to Wall Street Journal, Greek Prime Minister Alexis Tsipras is trying his best to avert a fresh confrontation over Greece’s bailout, the country’s broken finances and the participation of the International Monetary Fund in the Greek adjustment program. Tsipras is doing his best in thiss direction at meetings in Davos, Switzerland.

The WSJ sees ” disputes over the country’s broken finances threaten to reignite fears about its future in the eurozone,” and quotes a senior Greek official claiming that “a storm is brewing” if Tsipras will not his ECB, EU and IMF interlocutors in Davos that “Greece’s creditors should acknowledge its overhaul efforts under its latest bailout program and disburse rescue loans.”

There is a deep gap between Greece and the IMF over “the health of Greece’s budget outlook, and how aggressively the country must cut its pension spending”

The IMF reportedly thinks that “Greece needs a radical overhaul of its overstretched pension system” in order to achieve the necessary budget surplus.

Greece wants less austerity.

In the context of increasing pressure again towards Greece to accept all creditors demands, good old German Finance Minister Wolfgang Schaeuble jumps in the discussion – but not he himself personally. Rather with people who know what’s in Schaeuble’s head and who claim that Schaeuble wants to pick up the thread he left hanging around in 2015 and start a new debate about a Grexit in 2016..

Germany’s “powerful finance minister, Wolfgang Schäuble, has long believed that Greek politicians aren’t capable of adapting Greece’s economy to the rigors of euro membership. Mr. Schäuble sees Greece as the weak link not only for Europe’s common currency, but also for Europe’s border controls against migration, and would welcome a new debate about a Greek exit this year, say people familiar with his thinking.”

Full WSJ report here

Been there, seen that. Many times. Countless times. The point is that within the eurozone and with no option to devalue the currency, Greeks will see their living standard further deteriorate in the context of “internal devaluation.”

tornado greece

I see a storm & a tornado over Athens….

We will all live with monthly pensions or salaries around 700 euro but pay prices for goods and services worth double.

Blame the Value Added Tax of 23% for every souvlaki with salt and every chopped chicken drumstick, the overtaxation, the social security contributions, the prices for electricity, the this and the that.

There is no way out.

PS Never mind the Grexit, we still have Varoufakis’ Plan X, I suppose…

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One comment

  1. Giaourti Giaourtaki

    The Grinch told the Davos audience of a podium “discussion” – part of it a laughing hyena Lagarde – that the participation of the IMF was never his idea, it was just Merkel’s order.
    Anyway, to still have the IMF outside is their trick to kick out Greece as the German Scheisstag can always claim “we voted on condition of IMF being part” of the shit although some may claim they voted on condition that Greece is not refusing the IMF; new situation – new vote.
    The same dirty trick with sending 900 instead of – by Greece ordered – 1800 Frontex mercenaries and let Europe think that Greece “refuses help”
    Anyway the rest of the story needs a headline like “the Grinch wants Greece to drown hundreds of thousands refugees” or “Varoufakis: Wolfgang wants us to drown 100.000”