Schäuble is the word – No new Greece-Drama – Reuters Germany

Washington Finance Minister Wolfgang Schäuble has ventured far: “I am quite sure that we will not be confronted with a crisis in Greece this year,” he said in an interview with Reuters shortly before the Spring International Monetary Fund (IMF).

In Washington should, it is hoped, the CDU politician, an approach to others the counterparty in dispute over the reforms and Greek debt be recognizable. The signals but initially remained weak. An Overview:

THE BATTLE MANAGEMENT

At stake whether and how to proceed with the up to 86 billion euro aid package Hellas of euro partners last summer. The Athens for promised reforms, the extent there is agreement, has the crisis-ridden Greece is not met in full. Therefore, for months no more aid money flowed. Especially in three places there is a lack, critics say: in the pension reform, the privatization of state assets and budget restructuring

Even if the experts of the IMF, European Commission and. the European Central Bank certify the country to be broadly on track, immediately after that, waits the next hurdle. For then it must be decided whether the country’s debt which have given rise to twice the economic output, are still viable – ie can be reliably operated with interest and repayments. From a “Yes” to this question depends on whether the IMF involved with several billion in the program.

SCHÄUBLE shy NEW DECISIONS OF FEDERAL DAY

from Greece rumored recently the demand, an agreement on the review of the progress of reforms must quickly here, so again aid money could flow. Yet Schäuble and IMF are with his close friend Christine Lagarde as head irreconcilable. Schäuble’s position on the requirements of the utility is: There must no essential change. This concerns in particular the requirement of a budget surplus – excluding interest payments – of 3.5 percent of economic output in 2018 and the privatization with a target sum of 50 billion euros over the next 30 years. Because significant changes would bring Schäuble by the Bundestag. And this is considered a highly risky business.

With regard to the debt of the German Minister initially sees no need for action. Because the country interest and repayment breaks have already been granted by 2022, there should be no major problems with the debt service here. Preliminary report therefore: where sustainability.

IMF insists on DEBT RELIEFS

Very different estimates of the IMF, the location a. The fund wants a central requirement – namely the budget surplus – lowered because it seems to him no longer realistic. Next to turn on the saving screw to achieve the target rate of 3.5 percent, the fund wants the country but also not expect how IMF Europe chief Poul Thomsen says. From the IMF’s point of view can Athens its escalating debt not permanently wear. Therefore, the euro partners would help. Then the fund could enter the utility, otherwise not. After all, the IMF now holds a solution without a haircut, the Schäuble rejects vehemently feasible.

For the Austrian Finance Minister Hans Jörg Schelling, therefore at the end only one solution left: a further extension of existing loan terms and other improvements in conditions. If the IMF does not satisfy, it should go without him. “If not, that’s not the end.”

(edited by Christian Krämer ; for questions please contact the editorial board at the telephone numbers +49 69 7565 1312 or +49 30 2888 5168)

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