The Greek government approves of the idea of the IMF withdrawing from monitoring implementation of the third Greek bailout.
According to government sources on Friday 13 January, ‘the possibility of continuing the program without the IMF or with its participation but not its funding, i.e. without its central role, is a development that could be a way out of the structural disagreement problem between the institutions, a problem which seems to be a constant obstacle to the conclusion of assessment without further measures and, thus, to the successful completion of the Greek programme.’
The Greek authorities were reacting to comments by German finance minister Wolfgang Schäuble about the IMF possibly withdrawing from the third Greek bailout. In German newspaper Süddeutsche Zeitung, he said that such a move would require the conclusion of a new aid programme under the European Stability Mechanism, which would then need to be endorsed by the Bundestag.
According to the IMF, Greece will not be able to achieve a primary budget surplus (ignoring debt servicing) of 3.5% in 2018 without taking new measures, something that the radical left Greek government refuses to countenance. The IMF is also calling for a substantial reduction in the country’s public debt, and unpopular measures relating to the jobs market. Athens wants a full return to collective bargaining in Greece, which was reduced during previous bailouts.
The above government sources continue: ‘The idea that the EU has by itself an institutional support framework is not a new one. This view is constantly gaining ground in the EU institutions and, after all, it is welcome by the Greek side, provided that the appropriate initiatives and decisions are taken in a timely manner.’ (Original version in French by Mathieu Bion)