Debt Relief? What Debt Relief? There is no problem with Greece’s debt. Head of Erupean Stability Mechanism, German Klaus Regling side with German Finance Minister Wolfgang Schaeuble and said very clear: There will be no problem with the Greek debt for at least a decade.
“In the short-term, there’s no problem,” Klaus Regling, managing director of the European Stability Mechanism, told reporters on Wednesday evening.
While Greece’s national debt has risen to around 180% of its gross domestic product since the financial crisis, that is “not relevant if you’re paying 1% interest,” he said. Athens is currently paying less for its debt, relatively speaking, than the governments of France or Belgium, Mr. Regling said, thanks to his fund’s cheap loans.
German Finance Minister Wolfgang Schaeuble has recently repeated several times that Greece’s problem wasn’t its debt, but rather a need to gain competitiveness.
“I am rather on the side of [Mr.] Schäuble than [IMF chief] Lagarde,” Mr. Regling said.
He highlighted the huge savings that Greece makes by borrowing from the bloc’s rescue funds, which he said amount to almost 5% of the nation’s gross domestic product every year. (Full story WallStreetJournal)
PS good to know that there is no problem with the debt – with such internal devaluation of Greeks’ wallets and lives I wonder how much people will be still able to pay that damn’d low EU lenders’ interest.
He and Saugosch have also the plan to get all decisions of ECB and Eurogroup “more democratic” and centralized only in ESM, Saugosch came up with that already 2010 and now with his Ceta-desaster comes back.
Let’s hope that until he’s dead that hackers will be able to delete all his traces, so that in the end nobody will remember him, he gains just void and can party in nirvana with Donald Duck, the latter will be a show in Sea-World and the kids will ask “who’s that creepy little smack?”