Friday, July 17, 2015

German green light to plan for Athens. Tsipras launches reshuffle – The Republic

MILAN – “Announced the new greek government. The Prime Minister Alexis Tsipras makes a total of nine replacements of ministers and deputy ministers.” After the rift created by the vote in favor of the European plan to rescue the Greek leader changes the team to lead the country, the day in which the plan has passed the test of waiting Bundestag: The German Parliament, after the ok of the Finnish yesterday’s and today’s Austrian, has given the green light to the deal that will bring the ESM to provide aid for Athens, that with the support of the IMF should reach 86 billion. Athens cashes another step forward, and expected important: the green of the 28 EU countries to the bridging loan of 7 billion that will be used to meet immediate financial needs. Meanwhile, discussions are still on to intervene on greek debt, which is currently at 177% of Greek GDP and that – in the event of the launch of the third floor of aid – sfonderebbe share of 200%.

Merkel and Schaeuble Bundestag . “I know there are many doubts about whether Greece will be back on his feet, but it would be irresponsible not to groped this way and not give a chance to the new Greece,” said the chancellor Angela Merkel the Bundestag, opening the debate on the bailout on his birthday (flowers for her from the Chamber). “It ‘been a tough deal for all parties involved and it was the last attempt,” he acknowledged in front of the German MPs. In the end, 439 voters out of 598, of the 631 that make up the German assembly, expressed opinion in favor of negotiations, as was announced by President Norbert Lammert; 119 voted against and 40 abstained. The parliaments of Estonia and Bulgaria have expressed more favorable opinions.

The German discussion was preceded by a growing controversy, which has swelled in German soil what commentators have called the “Grexit-Brigade”, ie the ranks of those who think it is more appropriate for all that Athens regards the company’s single currency. The hawk Finance Minister, Wolfgang Schaeuble , on the other hand has suggested for some time that a Grexit can be a temporary solution, only to reassure the chancellor that would have the floor in Parliament. Indeed he spoke specifically of a “last attempt with Athens”, which “now it’s act” after “cleared” all the good had been done in the past in the past six months.


In his speech, Merkel has retraced the difficult situation that was generated for the population: “There are days in Europe, which could not be more dramatic. Imagine that German pensioners are waiting for hours in front of the closed banks and should expect to get € 120 a week from their pensions, “he told the Bundestag.

Go ahead with the bridge loan, the home front and the reshuffle of Tsipras. It ‘was instead the Commission Vice-President EU, Valdis Dombrovskis, to announce the final green light to the bridging loan of 7.16 billion, to be paid through the old bailout fund EFSM. Money that will allow Athens to meet next Monday to reimbursement from 4.2 billion to the ECB itself. Greece will then repay 2 billion arrears which the IMF and pay salaries and pensions. The green light by the Ecofin Council, said Dombrovskis, means that “twenty-seven countries have decided to show solidarity with Greece, but solidarity is accompanied with accountability”. The bridge loan will be available to the Greek banks in time for the deadline of next Monday and will be repaid from the bottom all’Efsm salvastati, ESM once the third program of international assistance will be operational, “I hope in a few weeks,” he added, explaining that the Eurogroup is working hard to give the formal mandate to the Commission to start the investigation. The same ESM has given the go formal, in his board, at the start of negotiations.

Meanwhile, though, the greek prime minister has to deal with the domestic situation: the split of Syriza on the approval of first reforms requested by creditors is inevitable reshuffle. Leave the scene dissidents: Minister of production of ‘energy has been named Panagiotis Skourletis instead of Panagiotis Lafazanis, leader of’ platform of the left ‘. As Deputy Minister of Finance comes Tryfon Alexiadis, instead of Nantas Valavani who had resigned. New deputy defense minister is Dimitris Vitsas, replacing Kostas Isychos. Panos Skourletis
by the Ministry of Labor will go to the Energy, Giorgos Katrougalos from the Labour and Administrative Reform Christophoros Vernardakis Katrougalos will replace the Administrative Reform. Comnunque looming early elections this autumn. In the background the emergency generated in Athens since the outbreak of a big fire near the capital.

The IMF, aid, debt. While the German MPs gave their verdict, and EU leaders decided the bridge loan, the waltz continued declarations on whether to cut the Greek debt. On this point, already supported in a report of the past few days, he returned to the International Monetary Fund. Out of the crisis “we must restructure the debt in order to lighten the burden,” and more specifically “significantly extend the deadlines, the grace period during which it is made no payment and reduce interest as much as possible,” he pressed the director of IMF, Christine Lagarde , speaking on Europe 1 . The IMF has reiterated its willingness to participate in the plan (50 billion would come by the ESM, 25 would be in addition to the banks and the remainder would come just from Washington), provided that the bailout is “complete” and therefore inclusive of an intervention debt. “In the Eurozone can not be a debt haircut,” Merkel responded indirectly by the Bundestag. Beyond the skirmishes of circumstance, however, it seems to see a convergence in the statements to a rescheduling of the debt, rather than to his cut that for too many EU governments would be unacceptable. The IMF offers of grace of 30 years (during which block redemptions) and the EU could open to an easing of proportions below: Another subject on which you will negotiate in the coming days. Dombrovskis himself said that “debt sustainability will be a crucial part of the negotiations.”

The same Mario Draghi, the conference that announced the increase of liquidity in favor of Greek banks (which could reopen Monday, except to keep a limit on withdrawals to prevent the flight of deposits), admitted that an intervention on the debt will be done. The 900 million additional cash as part of the emergency line Ela ( Emergency liquidity assistance ) were read by all observers as a great openness to Tsipras.

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