On him the wrath directed:. Wolfgang Schäuble on a poster of reform opponents
The European rescue fund (EFSF) has officially established a debt default by Greece. Acting on a proposal from EFSF CEO Klaus Regling but the rescue package does not require the immediate repayment of emergency loans. This was announced by the EFSF on Friday in Luxembourg. Greece had until last Tuesday a loan of 1.54 billion euros need to repay the IMF, it did not.
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We think openly and strengthened his claims, informed the EFSF with. It will monitor the situation closely and will review its position regularly. Greece is the largest borrower of the EFSF. Overall, Greece owes the EFSF almost 145 billion euros.
“This default is a cause for great concern,” Regling said. “He breaks the commitment of Greece to comply with its financial obligations towards all its creditors and opens the door to serious consequences for the Greek economy and the Greek people.” However, shareholders would not have to worry because the bailout robust guarantees of the euro countries dispose.
Tsipras: No to blackmail and ultimatums
The Greek Prime Minister Alexis Tsipras has his compatriots called again for a “No” in the referendum on Sunday. The people had to say no to blackmail and ultimatums, Tsipras said on Friday in a televised address. He sees the position of his government supported by a report from the International Monetary Fund (IMF). The Fund had declared that Greece could rely on an extension of loans. Should the economy go worse than expected, the IMF also calls for a haircut. Tsipras said the report confirms the obvious: “that the Greek debt are not sustainable.” However, he called for more than the International Monetary Fund: a haircut of 30 percent and a suspension of payments over 20 years
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The federal government, however maintains its no to a further haircut for Greece. From the financing needs identified by the IMF, “the conclusion in no way infer that a haircut imperative” should be, said the spokesman for the Ministry of Finance, Martin Jäger, on Friday in Berlin. If you say, the problems would be solved via a debt cut, then there is the possibility of reform measures.
Schäuble: No quick money after the referendum
Finance Minister Wolfgang Schaeuble dampens hopes the Greek government to get fresh aid money quickly after the referendum on Sunday. Negotiations on this are somewhat after the recent program expired “on a completely new basis and under difficult economic conditions” will take place. “That will take a while,” the CDU politician the “Bild” newspaper said (Saturday).
Schäuble said: “The proposal on which the government plans to hold a vote, no longer on the table. We have to see how the government in Athens dealing with the results, the consequences of that. And then the Greeks can make a request to commence negotiations. “If there is such a Greek request, it would be examined by the finance minister of the euro zone. “And if certain conditions are met, the Euro Group will be new negotiations in favor. Decide beforehand the Bundestag must. Only then we can negotiate at all. “
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Schäuble expects difficult negotiations. “We’re talking about a program by the clear principle: support for real consideration. Greece needs reforms. But I now know already: That would be very difficult negotiations. Because the situation in Greece has deteriorated dramatically in recent weeks. “
Prime Minister Alexis Tsipras had surprisingly announced the referendum on the reform proposals of the creditors of Greece just a week ago, which made negotiations fail the euro zone finance ministers to the highly indebted country.
The German stock market to keep the investors against the Greek referendum over the weekend further back. The DAX lost with slight variations until the afternoon 0.10 percent to 11,088.11 points, a.
What happens now with Greece?
Chapter 1: Together everything is better
Chapter 2: End of euphoria
With the outbreak of the financial crisis in 2008 and a general recession, the situation in Greece worsened. The end of April 2010, the government formally applies grants. EU, European Central Bank (ECB) and the International Monetary Fund (IMF) to approve loans under strict austerity measures. The years that followed are a constant back and forth. Greece needs money again, the reforms are implemented in part, for the lender but not sufficient. Debt shall be adopted. The economic situation of the country is still getting worse, unemployment shoots up.
Late last year, the then Greek government calls new elections, because they can not agree on a new budget for the country with the donors. The EU warns of such elections, because the radical left Syriza party, which defends itself against the austerity requirements of EU, ECB and IMF could win.
Chapter 3: wishes are fulfilled
The mood in Greece is at the beginning of this year so bad that’s exactly what happens. Prime Minister Alexis Tsipras and Finance Minister Yanis Varoufakis be selected and realize many of their election promises immediately. Make official dismissed again, increase the pensions and open up the closed system of public broadcasting again. That costs a lot of money that Greece has not, but this is lead until the middle of the year to serious problems. On this June 30 namely runs from the second rescue package for Greece. The country then must operate, what it is not able without new loans a loan from the IMF. The Greeks begin to withdraw money from their accounts.
In recent weeks there for this period repeatedly crisis summit, even at the technical level with the finance ministers of the euro zone, even the leaders. Lange sees it, despite many delays of as if you look at some kind. While the financiers and Greece argue over whether the country should above all by an increase in income, for example through an increase in VAT, or by cuts, as a reduction in pensions achieve reform conditions of donors. The financiers call for these cuts forcing Greece Bucks. Most observers assume, however, that will be agreed in late night sessions just before the deadline once again to a compromise. The European Central Bank bridged the financing difficulties of Greece at this time with emergency loans (Ela). The Greeks raise more money from their accounts.
Chapter 4: Escalation
But then the situation escalates end of the week. Alexis Tsipras calls for many observers and participants totally unexpected from a referendum on the austerity proposals of donors. The people should decide whether it wished to accept the terms of donors or not. The Greek Government has positioned itself clearly and is calling on voters to vote against the proposed reforms. Again and again was thought in the past about such a referendum, but so precipitously no one expected it.
With this referendum is on the one hand clear that until June 30, no agreement can be reached, because the vote is expected until next weekend take place. On the other hand, the Greek Government EU, ECB and IMF alienated so that Greece is excluded from the negotiations. Tsipras requested an extension of the utility until the referendum, but the donors refuse. The fronts are so hardened than ever. The Greeks are trying as much money as possible to withdraw, it formed queues at ATMs.
The announcement of the referendum takes many steps to be. The European Central Bank does not increase its emergency loans. Since Greece has almost exhausted this credit line, the country is no longer manage to connect with new money. The government announced last weekend to capital controls, forcing the banks to remain closed this week. The Greeks are likely to stand out since only 60 euros a day at the ATMs and transfer only within the country money. Parallel running this week, preparations for the referendum, even if there is some doubt as to whether the Greek Government is both financially and logistically able to organize such a vote in a few days.
Chapter 5: And now?
What will happen in the coming weeks, is the big question. The Greek government announced meanwhile, not to use the due this June 30 credit from the IMF. According to the IMF, the country is thus more or less insolvent. Now it is considered back and forth, like Greece could go bankrupt within the euro or if it is not yet on a Grexit, an exit from the euro, amounts. In addition, the question is how to proceed with the Greek government. If the people accept the proposals of the donors, Tsipras would end. In the ever-changing situation, hardly anyone wants to define a safe solution more. Only one thing seems certain: Nothing is excluded.
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