• sgr

German Press: Wolfgang Schäuble wants Grexit

Chances are that the IMF will indeed leave the Greek program

According to the German newspaper Bild Wolfgang Schäuble’s CDU will try to revive 2015’s Grexit talk as the upcoming elections will be drawing nearer. Although many things are happening in the same time, like Brexit, Trump, the refugee problem etc. the Greek problem still remains relevant.

The idea is that since the IMF is not willing to participate to the Greek program, the German Minister of Finance is more than willing to throw the Grexit card on the negotiation table once again.

The CDU economics expert Karsten Lindeman underscores that it is imperative for the EU to establish the rules. Regulations and procedures that will allow a country to go bankrupt inside Euro or to allow a country to leave the common currency.

At the center of the argument between the Eurozone and the IMF is the question “what should the Greek primary surplus be after the 2018?” The IMF is of the opinion that it shouldn’t be over 1,5% until 2060 in order for the Greek debt to be viable, while Germany want a devastating 3,5% for the next 10 years! The ESM on the other hand has promised some kind of a restructure of the Greek debt after this program is concluded.

It remains to be seen what is finally going to happen.