The International Monetary Fund will seek assurances by Greece’s main opposition party New Democracy in case the fund decides to participate in the Greek program. In the regular briefing on Thursday, the spokesman of IMF, Gerry Rice, did not rule out assurances by the Greek opposition.
Assurances mean that Greece’s main opposition party conservative New Democracy would have to commit to the implementation of the additional austerity measures to be implemented after the current program concludes in 2018.
Gerry Rice refrained from giving a clear statement on the issue, apparently because the IMF has not decided yet about its participation in the program.
However, in the first two bailouts, the IMF had posed similar demands asking the main opposition parties to commit to the measures either by voting them or sign a letter of intent.
If I remember well, the IMF had asked SYRIZA to sign such a letter in 2013 or 2014?
In its providence and judging by the results of several opinion poll, the IMF is certain that the next Greek government will be led by conservative New Democracy. should the SYRIZA-Independent Greeks coalition survive the legislative period, next parliamentary elections are due in 2019.
Spokesman Rice denied that the Fund was in contact with the Greek opposition.
“We are not in contact with the opposition, we encourage the Greek government to build strong support for the program,” Rice said.
The IMF’s demand was revealed beginning of the week by the French finance minister, Michel Sapin. Then the German finance minister, Wolfgang Schaeuble, who has the upper hand in the negotiations, was asked. He sent the insistent reporters to the IMF. However, he stated that “there should be a formula to ensure the implementation of the measures.”
Two days ago the IMF had dismissed the report. Today the Fund dismissed its own dismissal by confirming the report.
Although the measures are not included in the 3.bailout, the European lenders gladly adopted the IMF’s proposal for additional austerity measures because the primary surplus targets of 3.5% were not ‘achievable’ and the debt not ‘sustainable.’
On Wednesday, New Democracy sent the message that it will implement the additional austerity measures once in power.
We will not vote for the measures but we will implement them, ND officials told media adding “the state must continue.”
The lenders demand that the measures to be implemented after 2018, will be voted before the conclusion of the second review. In fact, they made this demand as one of the pre-conditions for the conclusion of the review.
In recent polls, New Democracy lead with a difference of almost double ratings towards left-wing SYRIZA.
