Wikileaks revelations: All eyes on Merkel-Lagarde meeting

The Greek government is preparing the ground for abandoning its goal for a debt haircut

International media and European partners believe that the phone-tapping revealed by wikileaks was carried out by Greek intelligence service, posing more difficulties in the negotiation talks for the program review.

German newspaper Tagesspiegel claimed that the head of Greek Intelligence Service, Yiannis Roubatis, is behind the phone-tapping. Mr. Roubatis responded to these allegations saying: ” The mission of the Greek intelligence service is to protect national security and sovereignty and always operates in line with the country’s laws, the head of the service”.

German Chancellor Angela Merkel will meet with IMF head Christine Lagarde. According to information, Poul Thomsen will attend the meeting, while on Wednesday he is expected to meet with German Finance Minister Wolfgang Schaeuble.

The conversation leak highlighted the role of the Fund, while helping also to clarify its role in the Greek program and its relations with European institutions. The Fund is pushing for a debt haircut, but Berlin has clearly ruled out that possibility, while Wolfgang Schaeuble insists on the participation of the Fund in the Greek program.

The conclusion drawn after prime minister Alexis Tsipras’ speech and additional information is that the Greek government is preparing the ground for abandoning its goal for a debt haircut and seeks a compromise solution with the IMF in order to proceed with the program review. To that end, Finance Minister Euclid Tsakalotos and Alternate Finance Minister Giorgos Chouliarakis have prepared a package of proposals that meet significantly Fund’s requirements.