German Finance Minister Wolfgang Schäuble said a Greek debt “haircut” is not on the agenda, “it’s off the table”, speaking a meter away from Greek FinMin Yanis Varoufakis on Thursday after the latter’s highly anticipated first visit to Berlin.
Speaking at a press conference held in a business-like manner, replete with smiles and cordiality, Schäuble and Varoufakis both clearly outlined each side’s positions and answered questions on the multi-faceted crisis now at the eurozone’s forefront: Greek debt, bailout packages, austerity, liquidity and what policy to follow to generate growth.
“We both agreed that we remain committed to a united Europe. Europe has a difficult journey ahead. There are many problems. The most difficult journey in this process falls to Greece,” was the general statement by Schäuble to kickoff the press briefing.
He repeated that Greece must reform its tax system and that, although the measures announced by Greece are going in the right direction, corruption must be rooted out.
“We must acknowledge the progress that has been made by Greece,” the German FinMin said, making specific reference to a reduction of unemployment and the fact that Greece posted a primary surplus in 2014.
“However, we agreed to disagree over the steps that Greece must take now,” he said, underlining that the country must continue to work with the IMF, the ECB and the EC.
Schäuble reiterated Berlin’s proposal to offer its expertise, by sending 500 German tax officers to Greece. That offer wasn’t taken up before, but it’s still on the table, he said.
On his part, Varoufakis began his statement by clarifying that they actually had not “agreed to disagree”.
“We didn’t discuss Greece’s debt schedule, but we set the scene for deliberations,” the Greek FinMin said, stressing the need to agree on an approach that will end this seemingly never-ending crisis that began in Greece and spread across the eurozone.
Varoufakis underlined that it is time to put an end to the “gross indignity” that has been forced on Greece, adding that the German people want an end to the crisis too.
“We in Greece will stop at nothing to crack down on tax evasion,” Varoufakis said and sent a clear message to the people of Germany, that they can expect “a frenzy of reasonableness from Greece.”
Varoufakis also pledged that his SYRIZA government will bring policies that will help the average European and described the situation Europe is currently in as a critical crossroads.
“Expect from us an unwavering commitment to telling it as it is…This is our commitment…We haven’t even been sworn in yet, and we seek that most precious of commodities, time. We need a bridging loan to give us time to talk to our partners,” the Greek FinMin said.
Background
The meeting took place amid tensions caused by the European Central Bank’s announcement yesterday that it has decided to restrict the eligibility of Greek bonds used as collateral from February 11, rather than the agreed deal for a decision at the end of February.
In an interview with the Telegraph, Varoufakis stated that he will try to be as charming as he can in Berlin.
“I will tell Mr Schäuble that we may be Left-wing riff-raff but he can count on our Syriza movement to clear away Greece’s cartels and oligarchies, and push through the deep reforms in the Greek state that governments before us refused to do,” he was quoted as saying.
