Lagarde and Daiselblum see today Tsakalotos - 91 Vital

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Saturday 14 October 2017

Lagarde and Daiselblum see today Tsakalotos

Just over a year ago, Euclid Tsakalotos likened the IMF and Germany to two cavalry elephants, and Greece to a gay woman trying to free itself.

A year later, things do not seem to have changed much, although Athens keeps low tones, so as not to "shadow" the Tsipra meetings in the next hours and days in the US.

At the double meetings he will have in Washington today with Christine Lagarde and Gerrone Desselblum, the Greek Finance Minister has a double goal: not to cause delays in the evaluation and additional new measures, IMF and European disagreements, and Greek surpluses in 2018. 
In fact, he is looking for a clean "political corridor" for the government until Easter that leaves room for political movements in Athens after the evaluation closes and clarifies the debt issue and the "net outflow" from the third Memorandum.

"Referee" Moskovishi

A characteristic of the delicacy with which Athens is trying to deal with the difficult situations is the secret of the government for the meeting of Pierre Moskovishi with Euclid Tsakaloto, whom the European Commissioner himself had just announced yesterday in Luxembourg. The Greek finance ministry never announced the meeting, which eventually took place in Washington yesterday but leaked out of the Europeans and not from Athens.

The meeting with Muscovites aimed to prepare all sides for Christine Lagarde's meetings with Mr Tsakalotos today and with Prime Minister Alexis Tsipras next Tuesday on the 17th of the month.

"Who pays the boatman"

Mr. Tsakalotos will ask the IMF chief to contribute, if not to avoid additional new measures for 2018, at least not cause delays to the Fund in completing the 3rd assessment - by Christmas or early in January - clarifying as soon as possible, though on what terms it will actively participate in the Greek program.

The aim is to start debating the debt solution and leaving the Memoranda in early 2018, but also to end before March, because then there are elections in Italy and Europe will be dealing with other issues. But the new page of the IMF-Berlin co-operation comes after the departure of Schauble from the scene, as well as the possible entry of hard-line libertarian Lindner as his successor.

Officially, yesterday yesterday, the IMF, by Paul Thomsen, as well as Christine Lagarde, on Thursday said he wanted quick solutions, but also that "the Fund is not calling for new measures". Nor do European lenders talk about the need for additional measures. However, the pressure for additional measures arises precisely because neither the IMF nor Europeans clarify how to bridge the gap between them (1.3% of GDP or 2.3 billion euros) that breaks them apart in the forecast for the primary surplus 2018.

The problem is not theoretical and needs to be resolved from the beginning of 2018 at the latest, and not later, if Athens does not catch the memorandum target for a primary surplus of 3.5%. If the solution is not either the IMF retreat or debt relief from Europeans, it is fatal then a series of austerity measures voted for 2019-2020 or the preventive "cutter" of wages and pensions.

Agathi remains the stress test of Greek banks, as well as the acceleration of the auctions that will "clean up" the credit institutions from the "red loans". For this reason, Paul-Paul Thomsen also spoke of the need - for the sake of the rest, covering, behind elegant expressions of "constructive" cooperation and understanding with the Europeans, the ... lively interest of the Fund in these matters.

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