German Liberals: We do not want Grexit but no debt monetization - Greece to continue reforms - 91 Vital

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Friday, 13 October 2017

German Liberals: We do not want Grexit but no debt monetization - Greece to continue reforms

Alexander Graf Lambsford, a deputy and member of the FDP's presidency, has previously criticized Greece and even called for the country to leave the eurozone.

In an interview with Deutsche Welle, the question of whether the FDP would put its issue out of the eurozone responded with an unequivocal "Nein" and described "unjustified" similar fears. In the Deutsche Welle question, if the FDP will issue an issue, it answers with an unequivocal "Nein".

Significant stability in the Eurozone

As he explains, "no one wants a Grexit. Nor do we want it. However, a prerequisite for the country's stay in the eurozone is the continuation of its reform policy. Being, the evolution of the real economy is positive. "

Previously, in a debate at the Foreign Correspondents Association (VAP), Alexander Graf Lambsdorff had stated that the possibility of leaving the eurozone should be created without a state losing its status as an EU member state. As it has already pointed out, "stability of the euro area is more important than the number of its members. "

In the near future the German Parliament will be called upon to decide on the disbursement of the next tranches to Greece. What attitude will the Liberals observe? According to Mr. Lambsford, the criteria for voting will depend on whether the disbursement is "legal, cost-effective and will yield the results in the medium and long term that will make Greece economically dynamic and financially stable. These are the determining criteria. "

"No" to a "debt mowing"

In May 2016, the Eurogroup agreed to examine the Greek debt with the successful completion of the third loan program and, if necessary, to take measures to make it sustainable. To what extent are the Liberals willing to respect this commitment, it was also asked by Deutsche Welle.

Lambordor makes it clear that the decision can not mean a debt cut because, he says, it would send the "wrong signal" to other eurozone member states. If there was a possibility of haircut, they would not be relevant to fiscal stability.

It would be difficult for some countries to approve a fourth or a fifth aid program

Concerning relief, he says "clearly and we are prepared to discuss it. But we will always emphasize a basic principle: each state should take responsibility for its fiscal stability itself. "In other words, a condition for any relief agreement should be at least a balanced state budget.

Regarding the discussion of the necessity of a fourth loan program, the FDP politician states to Deutsche Welle that "no answer at present can be given. But I think it will become increasingly difficult for countries such as Finland, Holland, Estonia, Latvia and even Germany to win their support for a fourth, fifth or sixth aid program.

Once we have to get to the point where Greece, with its own strengths, is financially and financially sound. "

They agree with the Makron proposals

On the contrary, the Liberals agree with most of the proposals tabled by the French President. Whether they concern security, foreign policy, digitization, or the development of a partnership with Africa to address the refugee crisis. However, as Mr Lambsdorff points out, there are also "certain details" in which the FDP formulates a different view. Especially in terms of increasing the EU budget and tax amendments.

"In other words," Mr Lambsdorff concludes, "80% to 90% of Emmanuel Makron's proposition can support them, some issues need to be discussed. On the issue of the European budget, however, we say clearly that it is the wrong way. "Lambsdorff points out that Merkel's first reaction to the Makron proposals was positive, but" in a cautious way ".

In relation to aid programs in euro-area Member States - both Wolfgang Schämble and Angela Merkel would like to replace the IMF with a European Monetary Fund. This role is seen by the European Stability Mechanism (ESM). In this view, Mr. Lambsdorf agrees, but not his party: "I personally believe that the ESM is certainly a useful mechanism. The majority of FDP has a different view, that it should be abolished in the medium term.

I insist, however, that the basic idea of ​​turning it into a European Monetary Fund is right. In the case of programs, their implementation should be controlled with objective criteria and as little political interference as possible. These criteria are met by the IMF for which I have great sympathy. "

Finally, as Alexander Graf Lambsdorff points out, the policy of the next German government will be the result of the negotiations of the parties that will work together.

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