- IMF chief Lagarde calls for a plan for a debt cut for Greece.
- Otherwise, do not want the IMF to participate in further loans for Athens.
- The Ultimatum brings Finance Schäuble into trouble – its negotiating position could hardly be worse
Either – or. Immediately prior to the special meeting of the international creditors of Greece next Monday has issued an ultimatum Christine Lagarde, head of the International Monetary Fund (IMF), the federal government: either the creditors are finding their fruitless negotiations on additional austerity measures and instead agreed to a plan for a haircut, which could occur before July in force and thus prevent a Greek default. Or the IMF would not take part in spite of the express wish of Berlin on the third loan program for Greece.
Lagarde had submitted their demands on Thursday night to Europe. The letter was addressed to formally correct the finance ministers of the 19 euro countries, but above all addressed to the Federal Government. “I think it’s time for me to clarify our position and to explain the reasons why we think that special measures, debt restructuring and financing must now be discussed at the same time,” writes Lagarde. The letter reached Berlin on Friday, a bank holiday, when most of the employed with Greece officials and politicians had free and could not be reached. . The Finance Ministry declined to comment on the, as it was called, confidential letter
Greece had fulfilled most one fifth of the requirements, the IMF
One thing is certain however: Lagarde demand now at the same time to negotiate on reforms, debt relief and financing, the plans of the federal government to be defeated by Greece completely. So far, Berlin insists the three goals – reforms, debt, financing – abzuhandeln succession. Federal Finance Minister Wolfgang Schäuble (CDU) repeatedly for months that Greece must meet the austerity and reform requirements first and after only when necessary, that one can talk about debt relief. Whereby Schäuble every clarifies: In his view, it was unnecessary, Athens meet on debt continue
But at the first target, the adoption of the austerity and reform requirements, all parties have made no progress in ten months. A maximum of 20 percent of the agreed in summer 2015 editions have implemented the Greek government, the IMF experts have found. That is far too little to push with a clear conscience, the eyes can and let the next tranche instruct from the third loan program comprising 86 billion euros.
Actually, should precisely for this reason on Monday afternoon, the international creditors of Greece fly to Brussels to agree on the payment of the next tranche. But when were preparing the IMF experts to the meeting, they realized that they were no closer despite months of negotiations on reforms and tinkering in Athens an agreement. they brought this bad news her boss Lagarde and decided to end the wrangling and put the ultimatum.
Schäuble’s negotiating position could hardly be worse
Lagarde letter uses the German hope end, after which it could succeed with an additional package of austerity and reform measures to comply with the obligations without debt restructuring. In mid-April had Schäuble can suggest the Greek Members may nevertheless adopt measures within the scope of two percent of GDP on supply, which should only be implemented if it hapere the measures initially adopted. The IMF approved the German proposal only with great reluctance. But Lagarde’s patience is at an end. It signals in the letter that the talks did not produce results “fruitless” and “have caused a delay in the negotiations and in the disbursement of much-needed loans” also. It rejects further talks on additional requirements from clear. “There is no doubt that it would not be very difficult to achieve these higher goals, but may even be counterproductive.”
The negotiating position for Schäuble could hardly be worse on Monday. The political mood in Germany allows no further compromises Greece. Schäuble can imagine what happened, he would now advertise for Athens to enact debt or relax standards in the Bundestag. Pretty sure a majority of MPs would support the government motion. But the majority would no longer supported by the Union. It would be the beginning of the end of government Angela Merkel