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IMF & Schaeuble prepare a rotten “compromise” on the back of Greece

The International Monetary Fund remains firm as firm as the German Finance Minister Wolfgang Schaeuble who has the upper hand when it comes to agreements about Greece. And for the time being it looks as if the IMF, and the European creditors, ESM incl., prepare a s0-called ‘compromise” solution on the back of Greece and at the cost of the people who have suffered immense income loses after three bailouts/austerity packages and seven years of economic crisis..

The IMF reportedly demands more austerity and thus a package that will have to be legislated immediately.

If the target for the primary surplus after 2018 and 2020 remain at 3.5% after the program concludes in 2018, the IMF has a specific vision in order to agree to close the so-called staff level agreement for the second review and so pay the way for substantive discussion on debt.

What does the IMF wants?

No more and no less than austerity measures totaling 4.2 billion euros with pension cuts and lowering the tax free allowance.

This is what Greek media report on Friday afternoon citing government sources.

“No government can pass measures like further cutting pensions or lowering the tax allowance down to 5,000 euro,” the source warned stressing “it would be anti-democratic and dishonest that we commit to this now, when elections will have taken place by then [2019].”

The source estimated that neither this nor any other government can co-sign measures 4.2billion euros with the primary surplus target to remain 3.5% for 2019-2020 and revealed that the IMF wants this measures package to be legislated now.

Alternatively, the European creditors proposed to Greek government that the IMF’s pre-condition is included in the “political agreement” that will be reached at the Eurogroup in December. The government rejected it.

The German finance minister vehemently insists in keeping the primary surplus of 3.5% even after 2018, “if possible for next 70 years,” the source said.

If this demand is approved by the Eurozone,  then “the compromise about which finance minister Euclid Tsakalotos spoke in dramatic tone will have taken place on the back of Greece,” news website commented..

Nothing will be concluded if not everything is being concluded at a Eurogroup meeting later this year, the government source said implying that final decisions will be taken at an extraordinary meeting before the end of the year.

At the Eurogroup meeting next Monday, December 5th, the government expects  quite great progress in achieving technical agreement (staff level agreement) with most open issues to be closed.

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  1. Giaourti Giaourtaki

    With an US-government full of Wall-street werewolves, Goldman Sucks and Billionaires the IMF had to wait a bit…
    and oh yeah, the term “conspiracy theory” invented the CIA in 63 against journalists and politicians that were digging Kennedy’s assassination and they weren’t able to kill or put into madhouse.

  2. Seven years of economic Crisis .. deliberately created by the European Union leaders & bankers .. so as to LOOT GREECE.
    It is being rumored .. that the HSBC gave the list of 350.000 of it’s most wealthy clients to Herves Faciani & Christine Lagarde to cause these wealthy tax evaders to be prosecuted & their wealth stripped from them .. wealthy clients of the HSBC who were said to be involved in tax evasion schemes created by the very bank that betrayed them.
    Can you believe this .. what the hell is going on ?

    • Giaourti Giaourtaki

      Much better: “Greek debt 60% lower than calcuated” “lie of the century”
      Falciani, btw was hunted by Swiss police, had to go underground and found later police protection in Nice

  3. If millionaires & billionaires cannot trust the crooked banks that look after their money .. who can they trust.

  4. I still do not understand where is the problem for Greece to introduce own parallel currency?

    • keeptalkinggreece

      we run out of printing ink

    • Giaourti Giaourtaki

      The Aegean Sea said “NO, I don’t want 5 million hippies and pensioners from all over Europe (with strong Euro) pee into me!”

    • Really?
      (1) It is illegal under eurozone rules, so Greece will be kicked out of the eurozone immediately
      (2) It doesn’t work. Wherever it has been tried, the economic situation deteriorates. Why? Because people don’t trust the parallel currency and want the real currency. A black market for exchange appears, and suddenly the new currency is worth less than the real currency.
      (3 Would it actually solve the current problems? No, is my answer.

      • The Eurozone is irreversible, isnt it? And every food stamp is in fact alternate money, if a secondary market is allowed.

        • Yes, food stamps are a legitimate alternative currency, but only for food. If you tried to use them as cash equivalent, I am sure that is illegal under Greek law. The latest news is that after forcing everyone to use plastic cards, the banks intend to abolish all plastic cards… and replace them with iris scans and other physical identification techniques. That way, they can cut their costs in both fraud and card expenses, and governments will really like this way to control everyone. No cash, no cards: you can pay only by showing your irises.
          This is the new fascism that is currently being cooked up by bankers and politicians. It will be 100% totalitarian, and will make the East Germany controls of the past look like amateurish attempts. If you can eat, move, defecate, etc only with the permission of banks and/or the State, then humanity is finished. I do wonder if these assholes in banks and governments realise that their ideas are not so different from those of the Nazis, and will have a similar outcome.

          • Giaourti Giaourtaki

            Over 1.5 bln p.a. banks bonus profit from forcing people into electronic money transfer via capital controls.
            To stop brave new world one has to end the digital scum era, just cut internet and electricity for a few weeks and the revolution can begin

  5. The beatings will continue until morale improves.