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IMF official: New austerity measures if primary surplus remains 3.5%

The International Monetary Fund alleges to not want more austerity, but… it will want new austerity measures if the primary surplus target of 3.5% remains after 2018. It has now be confirmed by the IMF spokesman Jerry Rice.

“The policies of the European Stability Mechanism are compatible only with 1.5% primary surplus, ” Rice told reporters at the regular briefing, implying that the Eurozone has to be blamed for the 3.5% targets.

IMF: We do not ask for additional austerity if Greece and the EU agree on higher targets for limited period we can support with structural reforms-policies

IMF: We have no deadline for the completion of the second review, we need to get to a credible package, no date for return of mission

IMF: Short-term measures for the Debt do not secure long-term sustainability

Jerry Rice dismissed claims there was an argument between Managing Director Christine Lagarde and IMF’s Responsible for the European Program Poul Thomsen.

STAR TV reported earlier that Thomsen suggested to Greek finance minister that if Greece doesn’t want to cut pensions, it will have to raise the Value Added Tax for basic food items from 13% to 14%.

imf-xmas

tweets & pict by @lenaargiri correspondent of state broadcaster ERT TV in Washington

I suppose this was the IMF’s Christmas present to Greeks.

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3 comments

  1. The IMF is one of the demolition forces of the Troika and the 4th Reich. They know that what they say makes no economics sense, but they also know that their mission is to destroy the country. They are not here to stabilise the economy but to facilitate orderly and effective asset stripping and looting.

  2. Exactly 25 years ago Soviet Union failed. But the Soviet Central bank – Gosbank transformed in some superbank, and a very strange Monetary Union was established. On May 7th 1992 Latvia as the first of post-soviet states released a parallel currency, Latvian ruble. Even as there were forecasts from all sides that the Latvian ruble will fall like a stone nothing like that happened. One important factor was high social cohesion that existed then. July 20th, 1992 the soviet ruble ceased to be official currency in Latvia.

    Since the first test – balloon was successful, very rapidly other currencies were introduced. Estonia even skipped this step and immediately introduced a currency pegged to DEM.

    Apparently Italy is also considering a parallel currency. This will rapidly increase the monetary base and give strong impulse for economic development, solve problems in the banking industry.

    The threat that every one in Italy will run and transfer balances to Germany is hollow. Why should Mutti then convert such balances to Neo-DEM? Buying German assets is possible, but the assets are so overvalued that the gain barely makes any difference to possible depreciation of Neo-ITL.