Schaeuble warns Athens new bailout deal without IMF not acceptable

20 January 2017
630 Views

German Finance Minister Wolfgang Schaeuble turned up the heat on the Greek government Thursday, warning in an interview that if Athens and its creditors conclude the second review of the country’s bailout without the participation of the International Monetary Fund then it will be highly unlikely that the German parliament will approve another program to replace the current one.

Speaking to Bloomberg at the World Economic Forum in Davos, Schaeuble said that Greek program was from “its beginning in 2010 based on the participation of the IMF” and that he wouldn’t support a new Greek bailout if the Washington-based organization refused to join the existing program – that will be a sign, he said, that the Greeks are not fulfilling their commitments, and therefore “the program will be ended because the precondition of the program, the basis, is destroyed.”
If the IMF was to withdraw, then the German Bundestag would assume that the program it approved in July 2015 is no longer valid and a new one would have to be agreed. This would need fresh approval from the parliament in Berlin, which, Schaeuble said, is unlikely, reiterating earlier comments to the effect that he would not advise Greece to “try to get the permission of the German parliament” – essentially dismissing Athens’s assessment, that the IMF’s withdrawal would help negotiations along.
German lawmakers, he argued, would contend that since Greek authorities are not able, with all the “flexibility granted by European institutions, to stick to what they have approved, the precondition for a program is no longer there.”
Differences over labor reforms and fiscal targets have stalled efforts by Greece and its creditors to conclude a compliance review of its bailout program.

The IMF has insisted that Greece’s budgetary targets are unrealistic, saying that they could only be met with fiscal austerity which, however, will kill growth.
Given that the review negotiations have essentially frozen, Schaeuble’s comments are an alarm call to the Greek government to push for their swift conclusion and accept the demands made by the IMF.

You may be interested

The Crusader castle of Chlemoutsi in the Peloponnese
GREECE
shares13 views
GREECE
shares13 views

The Crusader castle of Chlemoutsi in the Peloponnese

Panos - Jan 19, 2021

Imposing, and rich in history, Greece hosts countless medieval castles and fortresses. Each one has a different story to tell…Some…

Independent Panel says WHO and China failed to act fast in Covid-19 response
GREECE
shares22 views
GREECE
shares22 views

Independent Panel says WHO and China failed to act fast in Covid-19 response

Panos - Jan 19, 2021

The World Health Organization and Beijing could have acted faster when Covid-19 first surfaced in China, a group investigating the…

Cavusoglu openly threatens Greece with war in front of German Foreign Minister
GREECE
shares15 views
GREECE
shares15 views

Cavusoglu openly threatens Greece with war in front of German Foreign Minister

Panos - Jan 19, 2021

Greece and Turkey might have agreed to sit at the table for exploratory talks at the end of January, but…

Leave a Comment

Your email address will not be published.