Greece: milestone on debt – SPIEGEL ONLINE

Klaus Regling will in the coming weeks to have dominion over enormous sums:. Up to 86 bilion euros includes the new rescue package for Greece, which gave the euro finance ministers on Friday after about six hours of meeting her blessing Much of the money will come from the euro bailout fund ESM, the Regling passes. “I’m happy with today’s decision,” the German said after the meeting. “But that’s still no besiegelter Deal.”

In fact, the Yes of Euro Finance is indeed a crucial step after the negotiations with Greece were in the meantime completely collapsed. But at least one crucial question remains open, she finds herself in the penultimate paragraph of the good 1500 words long final declaration.

There it is, the involvement of the International Monetary Fund (IMF) on further bailouts was “indispensable”. At the same time, only the talk of an “intention” of the IMF’s management, the “recommend” “Consider” further financial support to. A clear commitment sounds different.

This may apply one of two major demands of the Federal Minister of Finance failed as. Wolfgang Schäuble (CDU) had until recently a clear promise of further IMF aid required – preferably of Fund chief Christine Lagarde personally. This called the new agreement covers “a very important step forward”. However, they also said: “I am more firmly convinced that Greece’s debt have become unsustainable and Greece debt sustainability can not recover on their own.” Therefore, it is crucial that the other Europeans the Greeks facilitation “far beyond the previously Contemplated also” pledged.

However, the Euro Group presented now although again the suspension of interest payments and subsequent redemption deadlines in view. A real haircut but she rejects as before. There is as “a small quandary,” admitted the Finnish Finance Minister Schäuble and allies Alexander Stubb at the beginning of a meeting. “The IMF is involved only at a debt relief. And we want the IMF have it, but no debt relief.”

Controversial requirements

And that is not the only problem: the agreed reductions and reforms are highly controversial, Prime Minister Alexis Tsipras took them only with the votes of the opposition and at the price likely election through parliament. All the more questionable are the face of political uncertainty specifications as the 50 billion euros that should Greece redeem through the privatization of state-owned

When Privatisation Fund’s criticism of the Federal Ministry of Finance seems to have been least successful:. Had the officials the original schedule establishing the Fund criticized as being too vague. The Euro Group held now that the Fund must be to end ready. Stressed was also, as desired by the Germans that the Fund is to manage shares of banks, tens of billions of euros will be provided for the recapitalization in a first step. In addition, insured the euro finance ministers that account holders have to fear any involvement in these bailouts (bail-in).

With extensive demands for improvements Schäuble had risked conflict with the coalition partner SPD again. We were told before the Euro-group meeting, Schäuble’s position will coordinated with the rest of the federal government – including a paper, which also should agree with the Ministry of Economy of Vice Chancellor Sigmar Gabriel. As Schäuble, however, was asked at the beginning of the negotiations to the common position, he referred only with a malicious smile easily to the final declaration of the recent Euro summit in mid-July. However,

Major protest from the SPD failed to materialize this time. Finally, the federal government, the new bailout must now only times bring through parliament, in particular threatened by the Union considerable resistance.

The fact that the doubts about the current rescue course not only grow in Berlin, is a paper of the remaining European institutions, which now for the time being have to do without the IMF. They also believe, therefore, that Greece’s debt must be reduced further. There are “serious concerns about the sustainability of Greece’s public debt,” it says in the document that SPIEGEL ONLINE.

The reasons for their worsened prognosis, the authors mention, among other things “a very significant weakening of the reform commitments and repeal reforms” since the change of government in Greece.

Following the agreement from Friday, however praised even Finance Minister Schäuble, the Greeks were very cooperative in recent weeks. Nevertheless, they would, given the experiences in the past in the future “very closely monitor Step by Step”. The first comprehensive review is already scheduled for October.