Ero zone officials hit back at the International Monetary Fund on Tuesday for publishing an article on the way forward for Greece’s fiscal and economic policy that thrust into the open a row between the lenders over Athens’ bailout. The post of IMF’ Poul Thomsen blaming both the European creditors and the Greek government while rejecting any own responsibility angered both sides of the old continent.
“The European institutions were surprised that the IMF staff published a blog post on the ongoing negotiations with the Greek government as new talks in Athens are starting with the aim of concluding the second review,” said a spokesman for the euro zone bailout fund, the European Stability Mechanism.
“We hope that we can return to the practice of conducting program negotiations with the Greek government in private.”
Greek Prime Minister Alexis Tsipras spoke of “silly technocrats” who name the ‘wrong’ ‘right’.
Government sources commented that “It is obvious, the IMF had more positive projections during 2010-2014 in order to justify the sustainability of the program it was participation. Since 2015, the IMF projections are negative so it was justify its absence.”
IMF recession projection for 2010 was -.4% – real recession 5%, for 2011 the projection was -2.6%, real recession was 7.1%.
For 2012, the IMF projection was growth 1.1%, in real life recession reached 6.6%. and other nice things that never happened because
a. The IMF admitted later that it had used wrong calculators
b. the Greeks did not implement all the structural reforms that IMF was demanding and that would allegedly lead to exit from the crisis, prospective and growth.
Too bad, the IMF applied for the first time a program based on internal devaluation. so far, the IMF’s programs were based on currency devaluation.
Too stupid that Greece was in the euro zone and the IMF did not how to deal with such a lab experiment, right?
Don;t get me wrong. I neither support the European creditors whose chief Schaeuble is obsessed with “austerity till death”, neither the IMF whose technocrats live in a bubble.
Point is that the first two programs-bailout conditions were wrong and impossible to be implemented and we pay the price today.