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All rigged in advance: Schaeuble offers €3bn extra measures to satisfy capricious Lagarde & the IMF

Effrontery in its full width. All rigged in advance. A package of 3-billion-euro extra austerity measures to convince the International Monetary Fund to join the Greek program. Proposal was apparently tabled by German Finance Minister Wolgang Schaeuble at a secret meeting in Washington on Sunday, but it was a European Commission proposal from March. It’s only that the Europeans and the IMF could not agree on the terms.

Just two days ago, the International Monetary Fund expressed its displeasure over “Greeks having misinterpreted Poul Thomsen’s statements that Greece would need more austerity measures.” In an unprecedented technocrat mannerism the IMF was still pretending it wasn’t sure whether it would join the Greek program because Germany was rejecting “debt relief” while putting the primary surplus target much to high at 3.5.% before interest payment. German Finance Minister Wolfgang Schaeuble rushed to find a way to bridge the fiscal target differences between the European lenders and the IMF so it can join the Greek program.

An extra package of 3-billion-euro austerity measures, as a ‘safety pillow’, for the case Greece misses the 3.5% Primary Surplus target.

€5.4 billion measures of 3. bailout + €3 billion extra ‘preventive measures’  = €8.4 billion

According to the scenarios, Greece will not have to pass this extra measures package through the Parliament now together with the 5.4 billion euro measures for 2016-2018. But the government will have to make a written commitment to the lenders to activate this “preventive measures” if it misses its fiscal targets.

The idea of the extra package was reportedly tabled by Schaeuble during a secret meeting of the so-called Washington Club on Sunday. The WC  – ops! – turns out to have been a meeting with ECB’s Draghi, IMF’s LagardeEU’s Moscovici, Eurogroup’s Dijsselbloem and Germany’s Schaeuble sitting in club leather chairs.

The Europeans and the IMF have allegedly not agreed yet upon Schaeuble’s proposal and Moscovici has reportedly claimed that such an extra package would  be politically hard for Greece’s embattled government to swallow and that it would bring down the Greek government. European Commission sources dismiss Moscovici’s alleged warning on Monday saying that the 3-bn-euro extra measures were in fact a EC proposal. According to private STAR TV correspondent in Brussels, there was such a proposal by this same European Commission on March 13th and that the IMF now has accepted it. The difference was that the IMF wanted “all measures to be legislated at once”, while the EC was defending a “gradual measures” position.

Behind closed doors and under the club table, Greece’s lenders decided that if Greeks cannot get 5.4 billion euro by 2018, they should be charged with another 3 billion. In the creditors’ logic it means: if you cannot pay 100 euro, I’ll have you pay 150.

Such “interest rates” are not implement even by loan sharks…

Lagarde6

  It’s just 3 billions…

Lagarde Malaysia

    YES!

The Greek government will obviously accept the new “EU-IMF deal on the Greeks’ hump.”

Government sources told media that “within the different proposals submitted so that the Institutions will come together is this for more measures to be decided now but to be implemented if and only if  the target of 3.5% of GDP is not met in 2018.

The proposal provides to conclude the Review talks with the measures of the European Institutions and to which the government agrees with and, only if we do not meet the target in 2018, we will obliged then to implement some of the measures proposed by the IMF. “

Over the weekend, Prime Minister Alexis Tsipras said that “only the measures agreed upon in July 2015 will be included in the Review talks.”

Who knows who will be Prime Minister in 2018.

+

 Have you sinned? Say3 billion oms” extra…..

After this turbulent weekend with IMF Spring meeting, earthquakes and the Pope on Lesvos, the Troikans return to Athens to pick up the thread and continue the Review talks.

Open are still the issues of Taxation,Pensions Reform and the “red loans.”

PS at the end of the Review Talks I am 100% sure that the lenders will have burden Greece with the debts of other EU countries as well.

And then, the lenders might hear Greeks speak… Chinese!

https://www.youtube.com/watch?v=k8DfxCZM5P4

Or any other resistance language…

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3 comments

  1. Once upon a time, there was a Prime Minster, who asked the people: Yes or No? They said no.

    And he continued – and made it even worse than anybody could have thought. How can he stay in office?

    For me, the only question is: When will the Greek people gather under the simple motto “we can’t anymore”, put a sign down from their balconies and just stop paying everything? Why do they still struggle and try?

    Where is the breaking point?

  2. This charade has to stop. When will the Greek people realize that there will never be any concession from our partners? They will squeeze and keep on squeezing until someone finally stands up and says – “No more.” The empty promises they make about a forthcoming “debt relief” are nothing but red herrings to provide needed cover for the quislings that are running the country to keep on pushing through austerity measures.

    The outlines of the endgame are becoming clear. The Tsipras government is on its last leg. if it doesn’t commit to the measures, the IMF and the EU will bring it down. If it tries to push through the additional measures the IMF and the EU want, it will fall. The IMF and the EU know this. So what they want is a written commitment from Tsipras that, comes what may, the measures will be implemented in the future by a Greek government, any Greek government. Once they have that in hand, they will insist on the additional measures and this will guarantee the SYRIZA government will fall. And who is waiting in the wings? Mitsotakis – the latest golden boy anointed by the IMF and the EU. In their eyes, he is someone who can form a government that will commit to all the measures demanded (after all he can always claim that his hands are ties by the written commitment the IMF and the EU are blackmailing out of Tsipras) and who will continue to aggressively privatize the country’s assets and drive the country to further pauperization.

    I always believed in Europe in the past but I don’t recognize myself in this Europe anymore. Perhaps another Europe is possible, but this one is no longer viable – not run by these people. The rotten foundations of the Europe they’ve set up for their own benefit and the benefit of their cronies need to be brought down. Otherwise, we are headed for some really dark times in Europe.

  3. Everything is rigged. Stock markets, commodity prices, interest rates. Deutsche Bank was caught rigging the price of gold and silver and now it wants to spill the beans on others in order to save its own skin. Oh…and Deutsche Bank (aka Douche Bank) is exposed for billions to the derivatives market. If that whale is ever going to beach then Germoney itself will be in trouble. Other European banks and economies the problem in Europe? Nah, it is Douche Bank. Psssst, don’t tell anybody.