‘Bombshell’ Wikileaks revelations on Greek crisis! Greek government emergency meeting!

Could new revelations derail Quartet-Greece talks?

WikiLeaks said it had obtained details of a discussion last month between the top two IMF officials in charge of managing the Greek debt crisis – Paul Thomsen, the head of the IMF’s European department, and Delia Velculescu, the IMF mission chief for Greece.

According to the Wikileaks transcripts Paul Thomsen is heard telling Velculescu: ‘I will not accept a smaller package of measures, i will not’, referring to the negotiations with Greece.

The whistle-blowing organisation said the discussion showed that the IMF was planning to tell Germany it will abandon the Troika (composed of the IMF, European Commission and the European Central Bank) if the IMF and the Commission fail to reach an agreement on Greek debt relief.

The IMF officials say that a threat of an imminent financial catastrophe was needed to force other players into accepting its “measures” such as cutting Greek pensions and working conditions, but that the UK referendum on June 23 will paralyse European decision making at a critical moment, according to the records.

The transcript quotes Velculescu as saying: “What is interesting though is that [Greece] did give in … they did give a little bit on both the income tax reform and on the … both on the tax credit and the supplementary pensions”.

Thomsen’s view was that the Greeks “are not even getting close [to coming] around to accept our views”.

Velculescu argued that “if [the Greek government] get pressured enough, they would … But they don’t have any incentive and they know that the commission is willing to compromise, so that is the problem.”

WikiLeaks said that in the meeting Velculescu revealed that the IMF is strategising about whether it should release its updated report on the crisis.

Meanwhile, following the revelations by Wikileaks, the Greek government is holding an emergency meeting Saturday to plan how to deal with the new developments. Greek PM Alexis Tsipras is currently meeting with Finance Minister Euclid Stakalotos, Foreign Minister Nikos Kotizias and Spokesperson Olga Gerovasili, while other Ministers are expected to attend. The government is furious over the IMF negotiating tactics on the review of the Greek program and its insistence to demand added measures worth 2.5 percent of GDP. A government sours said, if there is truth to the Wikileaks transcripts the Greek government will not allow ‘games’ to be played behind its back. The same source said there is concern over reaching a deal after the revelations.

 

With information from ‘Guardian’ and ‘Independent’ websites