Greece debt relief talks to resume after German bias

Greece debt relief talks to resume after German bias 1

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Following a week of media reports critical of the IMF’s handling of the Greek fiscal adjustment programme and the alleged bias by German Finance Minister Wolfgang Schaeuble to other EU countries, Europarliament vice president and SYRIZA MEP Dimitris Papadimoulis said that the whole Greek programme and the issue of debt relief for Greece will be discussed in September.

“I expected from Ms Lagarde and the IMF officials to insist on the debt relief in the discussion that will be held in September,’’ said Papadimoulis in reference to the report by IMF’s own watchdog citing errors in the handling of the Greek bailout and reform programme.

Papadimoulis also commented on Wolfgang Schaeuble’s  decision not to impose  sanctions on Spain, citing  ‘political’ reasons, given that Rajoy was leading a conservative party trying to form government in Spain.

According to German media reports from Handelsblatt and Spiegel, Schaeuble’s attitude was inconsistent: for Greece, which was led by a leftist government, he rejected any leniency or clemency against all warnings on the dire consequences of the austerity measures, whilst with Spain, with a conservative government struggling to stay in power he showed leniency and supported a gentle treatment on the issue of penalties regarding deficits.

GCT Team

This article was researched and written by a GCT team member.