According to Handelsblatt the German government is processing an alternative plan should the IMF chooses to leave the Greek program, something that becomes increasingly possible as time passes by.

Although, Dr. Wolfgang Schauble says that the IMF will not leave the program he is thinking about a European rescue of the Greek economy. However, the fact that the German elections are only a few months from now, creates some problems as this could be received by the public as a U-turn on behalf of the CDU/CSU with unknown consequences.

The new program the German experts are processing seems to include only the ESM, as the EU and the ECB are considered reliable by Berlin.

This change of opinion by Schauble is explained by many as the result of erroneous assessments on his behalf regarding the IMF’s presence in the program.

According to analysts in Berlin, Schauble rhetoric could be a tactical maneuver to make the Greek government understand that without the IMF the measures demanded will be even harder and to put some pressure on the IMF to make up its mind faster.

With the German elections so close a voting on a new Greek program could backfire giving a new momentum to AfD. However, if Greece goes bankrupt, Berlin will have to erase a big part of the Greek debt to Germany.

Schauble and Lagarde will meet in the World Economic Forum in Davos.