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 Lagarde, EU’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…
It’s just 3 billions…
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? Say “3 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!
Or any other resistance language…