So much optimism in the Greek debt dispute was not long. All parties have come to expect that at the meeting of the Euro Group on Tuesday in Brussels, the long-delayed first review of the reform program can be completed and basically endorse the Euro Finance the release of further loans to Athens. After Finance Minister Wolfgang Schäuble (CDU) had shown the day before on the edge of the G-7 finance ministers meeting in Japan Sendai optimistic, Euro Group Chairman Jeroen Dijsselbloem expressed similar on Friday. An agreement by Tuesday was highly likely, he told the television channel Bloomberg TV.
Author: Werner Mussler, economics correspondent in Brussels.
the Dutch Finance Minister is confident that the Greek parliament until the weekend the outstanding and necessary for a credit share reform decisions approved – especially those “mechanism”, which is to ensure that Greece will automatically shorten expenditure if the budgetary situation coming in the two years proves as currently expected worse. Probably gets Greece more than those paid 5.4 billion euros, which would have been due in the autumn of 2015, when Athens had already then realized due within the first inspection reforms as agreed.
More about
In the euro group it is, given the now greater willingness to reform of the Greek government, it made sense that Athens is not only always get as much credit to replace other, old loans. The Greek government should be able, in addition, with some government spending to improve the investment environment to push growth. How much the amount will be accurate, of course, is open. The euro crisis fund ESM holds 9 billion euros for meaningful, the European Commission has brought 11 billion euros into the game.
Dijsselbloem also explained why now everything will be faster than in the tough negotiations of recent months. It is now possible to talk about debt relief for Athens, as has long called for the International Monetary Fund (IMF) – and how they had until recently always rejected Schaeuble. Only four weeks ago at the meeting of the Euro Group in Amsterdam he had said, those facilities are not necessary. At a special meeting two weeks ago in Brussels Schäuble had already begun to regress. Now it is in the euro group, also Germany would such a relief not stand in the way. The ministers are also under political pressure. Council President Donald Tusk, who had previously rejected a demanded by Prime Minister Alexis Tsipras special summit of the “bosses”, expected by the competent ministers in return for a quick agreement – hence the controversy over Greece not the Proposed referendum on United Kingdom membership of the European Union referendum in Britain overshadowed the end of June
How to look exactly the debt relief, however, is still open. Still, the Europeans and the IMF with a view to the Greek skills for permanent debt reduction varies optimistic, and therefore maintains the IMF considerably more facilities for necessary than the euro countries to ensure debt sustainability. Recently called the IMF, that the reimbursement of European loans to Athens must start before 2040 and the term of these loans should be extended to 2080th Moreover, the interest rates by 2045 would have to be capped at 1.5 percent. All these demands were unacceptable for the Euro countries to this extent, it is in Brussels. Dijsselbloem reiterated course, the screws for the facilitation nothing has changed. At issue is longer repayment periods and loan maturities and at lower interest rates. As the mixture looks at the end, is still unclear. After consideration of the ESM from last week (FAZ of 11 May) the term could be extended by five years to 37.5 years that repayment could be limited to 2050 to 1 per cent of GDP and capped the interest payments for the same period at 2 percent will. According ESM could be added, the transfer in 2026 of the European Central Bank to trade in Greek bonds generated interest earnings to the country. Further, the ESM can not use Uncalled funds to replace the comparatively more expensive IMF loans.
At least the latter should certainly encounter German resistance, because for the approval of the Bundestag plenary would be required. Ins plenary turn wants Schäuble not let the new compromise reach. He looks for a solution, the only – required as with any loan released – makes a referral to the Bundestag Budget Committee needed. The expected from the Euro Group commitment to the IMF to continue to contribute to the Greek bailout anyway requires German concessions, to which the minister until recently had not been ready.
No comments:
Post a Comment