Little Time? At the end of the text there’s a summary.
On Tuesday it goes for Greece once again to all: only a few days in Brussels, the finance ministers of the euro countries, the heads of state and government will meet for an extraordinary summit to to discuss the situation after the Greek referendum. And the looks anything but good: The highly indebted Greeks have rejected the final reform package. You have come without a new proposal to Brussels. The creditors but are not willing to make further concessions Athens. Although the Germans, led by Federal Finance Minister Wolfgang Schaeuble, in Greece are considered the most responsible for the hated austerity. But compared with the mood in other countries n the German attitude is downright modest. In some countries, however, have brought in recent years, hard economic and social reform behind him, ever since the referendum any understanding for Greece runs out – and that gets the Athenian delegation now felt. Some make no secret that they would throw the Greeks sooner rather than out of the euro.
And even if the government but should not bring itself to new aid for Greece is: precisely in those countries that are especially critical of Greece, such aid would have to be approved by the respective parliaments. Namely Finland, the Netherlands, Estonia, Austria and Slovakia – as well as in Germany.
DPA
Kam no new proposals to Brussels: the new Greek Finance Euclidis Tsakalotos
“To date, the Greek Government has not done more to lead downhill as their economy”, the Latvian Minister of Finance Janis Reirs said on Tuesday in Brussels. Without “concrete new proposals from Greece” shall Latvia not look for new solutions. “We are talking about debt relief in any case. And also do not have the quick start of a new aid package.”
A little diplomatic, but similar in content remarked Latvian Valdis Dombrovskis, for the euro Vice-President of the European Commission: “If confidence is not restored, and there is no credible reform package, there is no solution.” In this case, Dombrovskis also wanted the Grexit not exclude
On Wednesday it comes with a teleconference next
However:. The new Greek finance minister Euklidis Tsakalotos has apparently submitted new proposals to the surprise of his colleagues in Brussels. “We have welcomed our new Greek colleagues welcome and listened to him as he has assessed the situation,” said the euro group chief Jeroen Dijsselbloem. “He has presented no new proposals, it is now the first, quickly send us a letter with a request for ESM assistance. Then he will send suggestions on how the Greek measures are designed to look, and we will see whether we come to an agreement. ” Wednesday morning will the finance minister speak in a conference call to discuss hopefully received letter
Without new financial aid, so much seems clear, would the Grexit -. The uncontrolled withdrawal of Greece from the euro zone – to prevent any more. Already Athens has virtually no money left, and on July 10, has Greece around two billion euros to repay short-term government bonds. On July 20, the repayment of additional 3.5 billion euros to the ECB stands at. At the latest by then the Greeks need new tools – or if they were likely to be forced shortly thereafter to introduce a parallel currency. The Grexit would be practically accomplished.
Balts see themselves as Reform Champions
Just could find some euro zone governments appear not so wrong. “If an element of a system is not working,” said the Latvian Minister Reirs, “then adds the disappearance of this element of the system no harm. It may even be positive.”
The Latvians are not alone with this attitude. Even in countries like Lithuania, Slovakia, the Netherlands or Finland, there is enormous resistance to it, continue to meet the Greeks. When Latvia and Lithuania in 2008 slipped into crisis, shrink their economies by around 20 percent, in Estonia it did not look much better. But the Balts have carried out tough reform programs with mass redundancies and cuts in social spending.
Today, the real gross domestic product in Estonia, Lithuania is again as high as before the crisis began in about. Even Spain, Portugal and Ireland have brought in recent years hard reforms behind. According manageable is there the excitement about a potential debt restructuring for Greece.
It is not just about justice, but also to the many billions that are at risk. Let there be a lot of talk about solidarity with Greece, the Finnish Finance Minister Alexander Stubb said in Brussels on Tuesday. “But also for Finland is a lot at stake.” If Greece’s debt will be fully adopted, would have to write off the Finns five billion euros, according to Stubb. “That’s ten percent of our budget,” said Stubb. “We do not want Greece’s debt load easier.” Greece must stabilize its economy, carry out structural reforms and bring its debt to a manageable level – only then could be renegotiated.But the Greek debt at around 180 percent of gross domestic product is so high that even the International Monetary Fund has officially stated a few days ago that it will not go any further without a further debt relief. Only few people want to play here in the euro zone. “On such a proposal can be discussed only with difficulty if there is no trust,” said the Lithuanian Finance Minister Rimantas Sadzius in Brussels.
Others point out that there are people in other euro countries even worse off than the Greeks. “Poorer countries as Greece” could lose more than four percent of its gross domestic product, the Estonian President Toomas Hendrik Ilves said. He proposed a “thought experiment in democracy” before. The other 18 members of the euro zone could hold referendums on the question: “If we increase our taxes to save Greece?” “How big?” Asks Ilves, “would be the probability of a yes?”
summary Several euro zone countries are strongly opposed to new aid payments to Greece, a haircut comes for you and certainly not in question. The Greek Government but also shows far no compromise. So the Grexit increasingly likely
Editor’s note:. In an earlier version of the article stated that the GDP in Lithuania, Latvia and Estonia was considerably higher than before the crisis in 2008 . It is nominal GDP, which does not take inflation into account. When real GDP falls less the recovery of large.
The History of the Greek crisis
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