Three weeks

Posted by Antonis D. Papagiannidis 29/05/2017 0 Comment(s) Economia Blog,

As days go by and the shock from the no-go Eurogroup session of May 22th are waning, the fact sinks in that there are only three weeks (or so) available of kicking the can down the road for the Greek issue to be confronted without some sort of shipwreck occuring. The Greek government is digesting the bitter taste of tactical failure: where Alexis Tsipras was confident (or was he not?) that wording about Greek debt relief would be forthcoming to provide him with political ammunition so as to face off (justified) attacks that he had surrendered to creditors' demands for tough fiscal measures to be legislated for after the duration of the current Adjustment Programme, he now has to live with either brinkmanship or total surrender. At opposition benches there is some kind of vengefulness; still, they too realise that were to be a wreck they would have o do far more than a salvage question.


The Dark Lord of Eurogroup - Wolfgang Schaeuble - has to cope with the reality that the IMF's presence he had woven into the texture of German participation to the Greek Programme is not fortcoming without credible undertakings of Greek debt relief; but such relief is anathema to W. Schaeuble - most importantly to his voters! The rest of the Europeans do as they have been taught to do for all of these years: they sit back muttering words of disapproval - and let the Germans do as they see it fit. (True enough, SPD worthies such as Sigmar Gabriel, and a large segment of the German Press - not just Sueddeutsche Zeitung or Tageszeitung, but also venerable Die Welt, mark their disapproval of Schauble tactics. To no avail).


What about the IMF? Well, the Fund avoided being present at the failed Eurogroup at a binding level - to wit: Christine Lagarde sent to Brussels expendable Poul Thomsen - and kept all options open to agree to some sort of compromise, provided its own principles as to Greek debt sustainability (or, at the very least "serviceability") being met.


Very much a Florentine situation! With three weeks to go - as of today, just a shade more than two! - neither a pleasant nor an easy one to deal with.



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