German media turned their attention to the resurfaced “Greek issue” this week as yet another round of negotiations between the leftist Greek government and lenders’ representatives continued in Athens under even tighter deadlines.
One eye-catching dispatch circulated by the mass circulation Bild and the television station Ntv claimed that Greek Finance Minister Euclid Tsakalotos was contemplating a resignation, due to his alleged annoyance at signing two upcoming bills mandating significant tax hikes and more supplementary pension cuts.
Bild added that money was running out in state coffers, while the political situation was deteriorating and Tsakalotos was threatening to leave.
Handelsblatt, meanwhile, reported that the Tsipras government was experiencing a “déjà-vu” moment, similar to the summer of 2015, “given that it must decide in a few days to agree with lenders no matter what. Otherwise, Greece’s money will run out.” The financial daily also reminds that the first review should have been completed last October.
Berlin’s Tagesspiegel wrote that the German government’s position on the issue of Greek debt relief is correct, as “the differences between lenders are not so great…”
“The new element is that if Greece wants to receive more billions (in euros) from the third bailout, then the country must swallow another bitter pill. It will be obliged, under creditors’ pressure, to take more austerity measures as a contingency.”
Süddeutsche Zeitung refers to Berlin’s insistence on the participation of the IMF in the Greek program, while also outlining the differences of opinion between the Fund and European creditors over the Greek debt, which the former believes is now unsustainable at current levels.
The paper foresees that European creditors will eventually extend the repayment period for Greece’s loans and cap interest rates.
Finally, Kölner Stadt-Anzeiger touches on the political dimensions of the ongoing negotiations, asking, rhetorically, “how Tsipras will react if the (government coalition) majority is jeopardized?”
“The Greek prime minister has the tendency to ‘short-circuit’ when he feels he’s being cornered. He avoids responsibility and lets the voters decide. It is very likely that he will hold a referendum or seek snap election,” the paper assesses.
