Friday, May 29, 2015

Greek troublemaker in Dresden –

As different perceptions may be. We have informed the partners about the status of the negotiations with Greece, German Finance Minister Wolfgang Schaeuble said at the end of the meeting of G7 finance ministers and central bankers in Dresden. “There was a certain point, who took a few minutes in our deliberations to complete.”

In the official daily routine that may have been so. It was about sustainable economic growth, to the regulation of financial markets and the cooperation in combating tax evasion. But that’s only half the story when it comes to a summary of the three days of top-class round in Dresden.

US Treasury Secretary Jack Lew calls for” flexibility “in the Greek armed

The other half holds US finance ministers Jack Lew as follows: “It has been very often talked about Greece, both in the official part and on the edge.” When finance ministers and central bankers come together in one place, would in addition to official issues whatsoever discussed the unofficial themes very quickly, he added with a wink added.

No agreement in sight

All the attempts of the German hosts to try to exclude the Greek debt drama in Dresden were, for that reason alone pointless because in Dresden also the tips of the funders Athens were represented: Christine Lagarde, the head of the International Monetary Fund (IMF) Mario Draghi , the President of the European Central Bank, Jeroen Dijsselbloem, head of the Euro Group, and EU Monetary Affairs Commissioner Pierre Moscovici.

Moscovici informed in the official part of the debate on the state of negotiations between the three institutions with the Greek government and referred the Athenians interpretation, according to which an agreement with the lenders was tangible, into the realm of illusion. This view is also Finance Minister Schäuble. “The positive news from Athens are not yet reflected fully in the conversation state of government in Athens with donors resist”, he formulated conclusively.

How long will the money last?

However, the Greeks runs in the fight against the threat of national bankruptcy of time. In total 1.55 billion euros must be repaid to the IMF in June, more than 300 million of whom are already on June 5 due. As long as the left-right government led by Alexis Tsipras refused to make binding commitments under the reform, the international aid funds amounting to 7.2 billion euros remain blocked. However, the current aid program expires on June 30th.

The problems were “very difficult” and the responsibility of politicians “very large,” said German Finance Minister Schaeuble in Dresden. “We do everything to fulfill this responsibility, but this is not only the responsibility of one country but also for the euro area as a whole, for the stability of the global economy and the European Union.”

Lew enjoins flexibility

Just above but also makes US Treasury Secretary Lew thoughts. Although he leaves no doubt that the G7 countries are unanimously of the opinion that Greece must meet a series of “tough decisions”. “You have to carry out measures that are likely to be difficult, but you must clearly show what steps they are ready to go.” On the other hand, must be sought in view of the global economy for a pragmatic solution and for more flexibility was needed. “I think that all parties have to move.” The “risk of an accident” climb if I do nothing to solve the problems.

Christine Lagarde, the head of the International Monetary Fund, was no longer the end of the G7 meeting express. She had given at the meeting interviews in which she made no secret of the fact that the IMF has with his patience at the end. The responsibility for the fate of Greece in the currency union do not see them at the IMF, as Lagarde. If the Europeans wanted to avoid a looming state bankruptcy, they would even take precautions.


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