After the Greeks No in the referendum on conditions for further loans threatened in the European Union now a fierce controversy over how to proceed. While some EU leaders calling for further negotiations with Greece, others call for an exit of the country from the euro zone. There will be issues that will debate the leaders of the euro countries on Tuesday at a special summit.
In the referendum had 61 percent of Greeks voted no for an answer. They thus austerity and reform catalog rejected, the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) had submitted a week ago Greece.
The country thus approaches more and more a national bankruptcy. Since a week the country’s banks are closed and the movement of capital is restricted. On Monday, the European Central Bank will once again debate about to what extent it can still assist with emergency loans the banking system.
Greek Finance Minister Janis Varoufakis now announces speedy negotiations with international donors at. “From tomorrow we begin our wounds to heal,” Varoufakis said on Sunday evening on Greek television. Europe should no longer be a “huge iron cage” be of austerity.
Rescue would now be significantly more expensive
However, it is uncertain how open the European partners will show for new talks. The euro zone finance ministers and representatives of the Troika had initially reacted harshly to a week before the announcement of the referendum as well as the breakdown of talks with Prime Minister Alexis Tsipras and declared the referendum decide about the future of Greece in the euro zone.
At the same time stressed politicians and officials always, we’ll be open even after a negative referendum for talks – although likely to make in the end much more difficult. First, the already low confidence in the Greek government is now further damaged. Secondly, a rescue in the face of the setback is likely to be significantly more expensive.
Several MEPs discuss now open on the exclusion of Greece from the euro zone. “Now the time has come for the Grexit” said Alexander Graf Lambsdorff (FDP), Vice-President of the European Parliament of the “world”. “The Grexit would make the euro zone more and make it clear that no one may violate the culture of compromise that has contributed to the success of the European Union for decades, in so blatantly.”
The head of the Foreign Affairs Committee in the European Parliament, Elmar Brok (CDU), brought a temporary exclusion of Greece from the euro into play. “It could be considered, temporarily exclude Greece from the euro and initially introduce the drachma again for two years,” he said. “The Europeans are now probably take the hard line.”
The MEP Monika Holhlmeier (CSU) spoke in favor of hardness compared to Athens. “The euro zone has to deal intensively with Greece and must not exclude a Grexit” she said. “The Greek government has withdrawn a spectacle of the worst kind, now you have the government Tsipras with full force encounter. The euro countries must under no circumstances submit a new offer.”
Go Euro -Staaten to extremes?
The Social Democrats in the European Parliament, however, will see the date for a concession. “Let us start negotiations with a new attitude of solidarity and cooperation again and note the difficult social issues related to Greece there,” demanded Gianni Pittella, leader of the Socialist S & D in the European Parliament
“We expect that the Greek government will return to the negotiations with a renewed responsible attitude,” said the Italian. “There will also be time, that some Member States and ministers stop the unacceptable hardships, national egoism and domestic political games.”
It is unclear how the Euro -Staaten behavior. So far, they were quite closed in the view that Greece has to accept tough reform conditions to get new loans. The question now is whether they go to extremes and the resignation of Greece will introduce the euro.
Spain and Finland hardliners are in the group of euro countries
For a conciliatory line appeared last French President Francois Hollande enter. He had placed on the edge of the Euro-special summit two weeks ago, the debate about a haircut this week. Hollande had called for in the past few days also to look ahead to a referendum a solution to the debt crisis.
The hardliners in the group of euro countries, however, are other. Although applicable Federal Finance Minister Wolfgang Schäuble (CDU) in the Greek perception as the most determined advocates of a hard line. But above all Spain, but also countries such as Portugal, Finland, the Baltic States and Slovakia came last one for particularly harsh conditions over Greece.
Governments fear not only that they have to write off the loans that were granted with their guarantees to Greece. It drives to the concern that populist forces might get boost by a concession to Greece in their countries. In Spain, where the left-wing populist Podemos movement gaining feed, this year a new government is elected.
Merkel meets on Monday Hollande
On Tuesday evening, the leaders of the euro countries will meet at a special summit in Brussels. Donald Tusk, President of the European Council, convened the summit on Sunday evening after already Chancellor Angela Merkel (CDU) and French President Francois Hollande had called for.
Previously, the euro zone finance ministers will meet. This was confirmed by the euro group chief Jeroen Dijsselbloem in a statement. He also commented on the referendum. “The result is very regrettable for the future of Greece,” he said. “Tough measures and reforms are inevitable for the recovery of the Greek economy.” They now wait on the initiatives of the government in Athens.
On Monday, Merkel will also meet with Hollande. “Both agree that the vote of the Greek people must be respected,” it said in a brief statement.
ECB focuses on Monday with Greece
The Vice President of the European Parliament Lambsdorff calls the Chancellor to take steps against France for a Greek exit from the euro zone. “The Chancellor has on Monday in her conversation with the French President to ensure that Hollande supports the common organization of a Grexit” he said. Germany had jumped in previous relief efforts and over his shadow and France come to meet. “We can not now time to expect from Paris,” said Lambsdorff.
The European Commission explained that President Jean-Claude Juncker in the evening and on Monday will consult with the leaders of the other 18 euro-zone members as well as with the heads of the EU institutions. On Monday morning, he would call the President of the Euro Summit, the President of the Euro Group and the President of the European Central Bank and is expected to speak on Tuesday to the European Parliament in Strasbourg.
The European Central Bank, ensure their emergency loans the survival of Greek banks will again deal on Monday with the situation in Greece. For Monday a conference call of the Governing Council is scheduled. “Not before the afternoon” it would take place, it said recently – where the schedule may change. The general expectation is that the ECB maintains the level of the previous emergency loans for the Greek banks.
Can Greece to ensure health and energy supply?
In the meantime, should be discussed in the group of European donors on humanitarian action. It is doubted that the Greek government may in the longer term finance important activities of the State. The closure of the banks a week ago is likely to have not only negative effects on economic performance, but also on the tax revenues.
The concern is great as Greece in the face able about the long term can ensure the health and energy supply of the country and with what money the Greeks to import about expensive drugs. EU diplomats stressed in recent days, it would be necessary to provide disaster funds and technical assistance.
Also on liquidity assistance was discussed. “Maybe we will have to give emergency loans to bridge to Greece so that the public service can be maintained and needy people get the money they need to survive,” said EU European Parliament President Martin Schulz (SPD) of the “Welt am Sonntag”.
It threatens a humanitarian serious situation in Greece. “Without new money, salaries can not be paid out, the health system does not fail, the power supply and the public transport and essential goods can not be imported, because they can no pay,” Schulz said.
“The now occurred escalation could have been avoided”
The President of the European Parliament is convinced that the European Union can mobilize additional funds to to respond to an anticipated emergency. “We will not let the people in Greece (…) in the lurch,” said Schulz. “For this money in Brussels would be shortly available.”
Even Austrian Chancellor Faymann took emergency assistance from this week. “One can on the conclusion of the Greek referendum be divided – the difficult situation of the majority of the Greek population but may we never be indifferent,” he said. “The increasing poverty in Greece asks for concrete humanitarian measures.”
The SPD MEP Udo Buhlmann criticized the Greek government as well as international donors. “The now occurred escalation could have been avoided,” he said. An “automatism for Grexit” he rejects. It had to be “everything” done to “prevent this setback for the euro zone even at the last minute”.
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