Objectives of the IMF and the Federal Government are hardly compatible – Berliner Morgenpost

  08.18.2015, 05:02
 
 

 By J. Dams, M. and S. Jost Greive

                 Berlin. Two days before the vote on a third aid package for Greece in the Bundestag promises amazing Angela Merkel’s spokesman Steffen Seibert: The debate over a classic haircut was finished for the federal government. “From a German perspective, it is a success, that of a haircut, so from a nominal haircut, no longer is the question.” But with debt relief there is room for maneuver.

Just how much is the question. For Jens Spahn, Parliamentary State Secretary in the Federal Ministry of Finance and Union member, says the Berliner Morgenpost: “At best, at the maturities there still a limited room for improvement.” And also by other representatives of the Federal Government is to hear that you do not think much of it, extend the maturities for repayment of the loan to 60 years. With such long running times there was no longer any difference between a haircut, so a formal debt waiver, and the so-called debt restructuring, so that Athens can carry the load easier.

Steffen and Spahn argue ago especially domestically. Because if on Wednesday the Bundestag will vote on the third aid package for Greece, it is especially the faction of the Chancellor, who threatened to mutiny. The reality, however, these statements do not necessarily have to do – at least not if you (IMF) wants as far always emphasized hold at all costs on board the International Monetary Fund. Because the German position and the Fund in Washington can be no haircut or a radical extension of payment terms do not bring to a common denominator.

negotiators in Brussels refer particularly to the updated debt sustainability analysis by the IMF of 14 July. In it, the institution on its serious doubts on the reform package back: “From Greece is expected to achieve a budget surplus of 3.5 percent before interest payments over the next few decades, few countries have managed that..” The current Greek Government has core public sector reforms undone without naming alternatives. This leads to considerable doubt that the country was able to achieve its goals -. And above all to keep them longer

But the criticisms of the IMF to go further and have not weakened following information of this newspaper also since mid-July: “Still, it is assumed that Greece’s productivity growth climbed from lowest to highest in the euro zone.” That would require very ambitious and steadfast reforms.