German Finance Minister Wolfgang Schaeuble was quick to dampen initial expectations of forthcoming talks to lessen Greece’s public debt, saying the country won’t face great pressure to repay creditors until at least midway through the next decade.
By Nikos Bellos
German Finance Minister Wolfgang Schaeuble was quick to dampen initial expectations of forthcoming talks to lessen Greece’s public debt, saying the country won’t face great pressure to repay creditors until at least midway through the next decade.
The influential German minister’s comment comes a day after Eurogroup president Jeroen Dijsselbloem announced that talks would commence next month with Athens over the issue. In fact, the Dutch finance minister was overheard telling EU Commissioner Pierre Moscovici that he intentionally made the comment, when the latter remarked that the idea would generate increased attention.
Dijsselbloem pointed to debt talks after the conclusion of a first review of the ongoing – and third consecutive – Greek bailout program.
Schaeuble said Berlin would participate in such a discussion if it believed that the Greek debt was unsustainable until 2024-25, as the intervening period entailed a significant grace period in repayment terms, as he said.
He added that given the current conditions he does not have the arguments with which to ask the Bundestag for any debt cuts for Greece. Moreover, the German FinMin repeated that results must first be presented and commitments met by the Greek government
According to diplomatic sources, Schaeuble doesn’t want speculation over a possible debt haircut to derail the Greek government’s reform and fiscal adjustment efforts.
Finally, he said he understands the IMF’s pressure to immediately deal with the issue, given that the Fund’s own charter mandates that it can only lend to countries with the prospect of sustainable finances.
Conversely, French FinMin Michel Sapin appeared positive, saying the time is nearing to bring the Greek debt issue to the Eurogroup setting.