By N. Bellos
The European Commission is reportedly eyeing a “trifecta” on the Greek issue at a now closely watched Dec. 5 Eurogroup meeting in Brussels, namely, completion of the second review of the Greek program (third bailout), a decision on debt relief for the crisis-swamped country as well as a commitment, in principle, by the IMF to rejoin the program as a lender.
The formula to lure back the IMF to the program reportedly includes a variety of medium-term debt relief measures, such as generous extensions of loan repayment periods, fixing low interest rates and even future reductions in primary budget surplus targets (after 2019).
The same Commission sources said that whatever measures can also be implemented in the near future, instead of immediately, as long as such commitments are at least outlined, such as a “road map” on debt relief measures after 2018 on the condition that the leftist Greek government religiously implements the current (third) memorandum.
Such a prospective compromise would ensure both implementation of the memorandum – an absolute demand by European creditors – and provide the IMF with the guarantees it requires in order qualify the Greek debt as sustainable.
As has been the case over the past few years, Berlin’s stance will be decisive. German Chancellor Angela Merkel and her powerful finance minister, Wolfgang Schauble, must balance internal political considerations, ahead of German federal elections in 2018, with pressure by other Europeans and the IMF to readjust the Greek program in a direction that will lead to growth and eventually a return by Athens to the markets.
EU Commissioner Pierre Moscovici said as much on Monday evening after a Eurogroup meeting, in pressing for a comprehensive solution in early December.
