When the Bundestag discusses the Greek issue

Posted by Antonis D. Papagiannidis 26/06/2017 0 Comment(s) Economia Blog,

A lively discussion in the German Bundestag about the Greek issue - not the decisive discussion, which will make available the 8.5 bn euros tranche for Greece to keep repaying its creditors and go along: this one will be held behind closed doors in the Finance Committee - leaves behind much to be used in later stages.

 

To make a long story short: even the ruling Christian Democrats, traditionally hesitant about things Greek and reluctant to accept that some sort of relief will have to be accepted at some time over Greek debt, have accepted that "Greece has made its homework" in meeting even more than the fiscal goals set to it. To Carsten Koerber of the CDU, the successful reforms undertaken by Greece should lead (the German side) "to do our part, to show we are also a credible partner".

 

This, even more so than the point made by Christian Petry of the SDP, that Schaeuble's obsession with having the IMF on board the Greek Programme (but... without conceding the debt relief the Fund strenuously supports) is "a virtual discussion", points toward a more honest discussion about Greece's debt when the German elections are over, in fall. Petry's SPD colleague Angelika Gloeckner called the austerity policy imposed to Programme countries like Greece "a growth trap", joining Petry in calling for all efforts to be centered henceforth to rebooting the Greek economy.

 

The session of the Bundestag over the Greek issue was held at the instigation of the Greens whose Sven-Christian Shindler attacked W. Schaeuble for electioneering, when he puts aside the IMF's demand that Greece should be granted debt relief - a move needed both to get stability back to the Greek economy and to allow investors to be attracted to Greece. The austerity policy enforced by the Angela Merkel - Schaeuble duo "should be stopped", since it has deepened both the economic crisis as well as poverty in countries of the European South.

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