Friday, August 18, 2017

Tsipras fights back…calls the IMF “criminal”. Merkel scrambling to find a solution

Prime Minister Alexis Tsipras threw down the gauntlet to Greece’s creditors, accusing the International Monetary Fund of “criminal” responsibility for his country’s predicament.

Finally, the type of leadership that Greece needs.

Yes its back is to the wall, and yes the outcome may be beyond bad for Greece if (and when) the default happens, but Tsipras is finally finding his voice on the international stage, and standing up to one of the most criminal of organisations, The International Monetary Fund.

Right now Greece needs a massive show of support for the embattled government…which albeit has made some tragic mistakes during the negotiation process with the Troika, is just now really hitting back at the miserable, failed policies implemented by the euro-oligarchs in power.

Via Bloomberg…

Addressing lawmakers in Athens on Tuesday, Tsipras gave no sign of backing down in the standoff over Greece’s bailout. Instead, he blasted the IMF’s adherence to austerity and accused the European Central Bank of using tactics that were akin to “financial asphyxiation.”

“The situation in which we find ourselves today is that IMF positions prevail when it comes to the strictness of austerity measures asked, while at the same time EU positions prevail when it comes to the denial for any discussion about Greek debt sustainability,” Tsipras, 40, said.

Tsipras’s rhetoric further diminishes the chances that the Greek government will be able to bridge the divide with its creditors in the IMF, the ECB and the European Commission any time soon. With two weeks until Greece’s euro-area bailout expires on June 30, the onus on resolving the deadlock lies with a meeting of finance ministers on Thursday followed by a June 25-26 summit of European Union leaders.

German Chancellor Angela Merkel, speaking in Berlin at the same time as Tsipras, said that “unfortunately” she saw little new to report on Greece and that she was counting on the euro-area finance ministers’ meeting to end the standoff.

“But even there, decisions are only possible if there’s a joint proposal by the three institutions and Greece that fulfills the conventionality,” Merkel told reporters.

“I’m concentrating all of my energy on helping the three institutions find a solution with Greece. That’s what I see as my task. I want to do everything possible to keep Greece in the euro zone.”

The Athens Stock Exchange Index fell 4.5 percent on Tuesday, while the Athex Banks Index dropped 6.4 percent at 3:58 p.m. local time.

In his speech, Tsipras warned that Europe must consider the euro-area’s future if it insists on imposing terms that are deepening Greek woes.

“I believe we are entering the final stretch,” he said. “One could say real negotiation only begins now.”

References:

http://www.bloomberg.com/news/articles/2015-06-16/tsipras-goads-creditors-for-greek-woes-as-merkel-sees-little-new

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