German Chancellor speaks to the Bundestag
Milan , July 17, 2015 – 10:40
In Greece, the situation remains difficult. While Tsipras away ministers ‘dissidents’ – a cabinet reshuffle that saw the ouster of 10 names – Monday morning Greek banks may not reopen, as announced by the Ministry of Finance: probably will be open only to branches that offer services to pensioners without credit cards or debit cards. Meanwhile, the Bundestag approved the start of negotiations with Athens for a third aid package.
Door closed until Monday
Credit institutions may reopen Tuesday or Wednesday, although they received a small injection of liquidity by the European Central Bank (ECB) which has paid 900 million to the Bank of Greece through the mechanism for the provision of emergency liquidity. It thus remains the still tense situation in Greece, despite the 28 EU countries have given their formal ok immediate disbursement of a bridging loan of 7.16 billion in two tranches to allow Greece to deal with the immediate urgent deadlines, as announced the Vice-President of the EU Commission Valdis Dombrovskis: to distribute it will be the ‘ European Financial Stabilisation Mechanism (EFSM) resting on the Union budget. And despite the German Bundestag has given its vote in favor of aid, it is clear that the bureaucracy struggles to keep up with a system to collapse: just think that the decision not to charge the public transport so far has cost more than 10 million to the transport system of the capital, and that in health the situation continues to be risky, with hospitals without staff and without medication.
reshuffle in the government Tsipras: Saturday the ministers swear
As if it were not enough complications, the Greek Council of Ministers, scheduled in the early afternoon of Friday, , it jumped: meeting postponed due to the fire that is threatening some suburbs of Athens. But it was not put off the reshuffle: Tsipras, in trouble politically after the agreement with the Eurogroup, made a total of 10 substitutions between ministers and deputy ministers. They left the scene ministers and deputy ministers of the radical wing of Syriza. The new ministers will swear Saturday before the President of the Republic, Prokopis Pavlopoulos. As the amendments are limited, you do not need a vote of confidence of Parliament.
The new names of the government
More than a reshuffle, it is almost a new government: Energy Minister Panagiotis Lafazanis was removed and in its place was appointed Labour Minister Panos Skourletis, which will be replaced by Minister of Administrative Reforms George Katrougalos. The post of vice-finance minister vacated by resigned Nadia Valavani was awarded to Tryfon Alexiadis, while Euclid Tsakalotos, appointed Finance Minister in place of Yanis Varoufakis, will retain the post. Professor Christoforos Vernardakis was also appointed deputy defense minister, and the deputy Olga Gerovassili got the post of government spokesman.
The go-ahead of the Germans
On his 61st birthday, the German Chancellor Angela Merkel has thus referred to the Bundestag on the Greek crisis and the third aid packages to save the Greek economy, again excluding a cut debt. A haircut would be contrary to the EU Treaties, stressed Merkel. Upset treaties “would be the end of the rule of law in Europe, and we do not do.” At the same time the Chancellor defended the agreement reached on the greek bailout, as “the only possible” and does not hide it “was hard for all parties concerned ‘and’ the last attempt as possible.” “Do not help Greece,” Merkel continued, “it would be irresponsible and there would be the risk chaos”: “It is a test of solidarity never seen.” A speech, that of Merkel, who convinced the German federal parliament: the Bundestag approved by a large majority the opening of negotiations with Athens for a third aid package. 439 deputies voted in favor. Against 119. Forty abstentions.
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Next steps
After the green light by the Bundestag and the approval of the board of Governors of the ESM to grant in principle the financial support to Greece, all eyes will be on next week’s first moves of the deal: should last not less than one month negotiations between the European Commission, ECB and IMF for a third three-year aid package of 86 billion. Our finance minister, Pier Carlo Padoan, stresses that it will be a “delicate negotiations, which will take account of past experiences”: “The program must be balanced and include both measures for a sustainable fiscal path both growth-oriented measures and the creation of jobs. At the same time we need to seriously reflect on the measures to be taken to strengthen the process of integration in the euro area and in the European Union. ” The deal will be part-fledged debt relief: and this is the novelty. Now they admit it all in front of the European creditors because now the national parliaments have given the green light to the negotiations: Germany, Austria, Finland, Latvia, France. The President of the Eurogroup Jeroen Dijsselbloem said he was “sure” that there will be problems with Greece in the coming years. It will not be easy. We are sure to encounter problems in the years ahead. But I think we will be able to solve them, “he said in a statement.
IMF: “To restructure debt and extend maturities,”
And on the Greek crisis back to bite even the International Monetary Fund, with the Director General Christine Lagarde who returns to reiterate the key points supported by the IMF out of the Greek crisis:” We must restructure the debt and lighten the burden ». More precisely, it must be “considerably extend the deadlines, the grace period during which it is made no payment and reduce interest as much as possible”: “We are not at the end of a process. We open on a very tight schedule and with a colossal challenge, “raises Lagarde. In an interview on TV Europe 1 , the number 1 indicates the IMF also in the modalities of the process: “A considerable extension of maturities and the period of grace” and “to minimize interest ». Lagarde explains that the plan for Greece must rest on two pillars: financing and debt relief, in fact, reforms and new side by side to a line of budget healthy.
Debt sustainability
Even the US press because the bailout will ensure a permanent solution to the debt of Athens. During a meeting in Berlin, the Secretary of the Treasury, Jack Lew, stressed “the importance of achieving debt sustainability in the coming negotiations” because, he noted, it is in the interest not only of Greece but “Europe and of the global economy. ” Among the many things rather unclear – and now clear that it is impossible because there is still no program for Greece in support of the new loan – instead there is this: how many funds of this package (below 240 billion euro of the previous two) to support the real economy will eventually Greek directly and indirectly (through the reorganization of the banking system today virtually failed).
July 17, 2015 (modified July 18, 2015 | 08:41)
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