If there was any confusion how Germany would react to the latest Greek plan, even though as we explicitly stated yesterday [4], the "new" Greek plan is really the "old" Greek plan but repackaged semantically for appeal to German taxpayers, even as the proposal to involve Europe's public entities in a distressed debt restructuring is a non-starter, all confusion can be now abandoned following remarks by Merkel's ally Kauder in which he not only called the Greek debt plan "half-baked" saying he will no longer respond to new proposals from Athens "every day", but making it clear that there will be no renegotiation of the existing bailout proposal saying "we have agreements with Greece and not with a government - and these agreements have to be adhered to."
From Bloomberg:
- Volker Kauder, the caucus leader for Chancellor Angela Merkel’s Christian Democratic-led bloc in German parliament, calls Greek debt recommendation “half-baked” demands a refrain from new proposals “every day.”
- "We’re not going to play this game,” Kauder tells reporters in Berlin ahead of CDU/CSU caucus meeting. “I’m not ready to comment on half-baked plans every day. The fact remains that we have agreements with Greece and not with a government -- and these agreements have to be adhered to.”
- Greek Prime Minister Alexis Tsipras’s new government has a right to make proposals, though must bear consequences
- “The German tax payer mustn’t be held liable for the decisions of this leftist-populist government,” Kauder says. “It’s up to Greece to decide.”
- Troika of ECB, IMF and Commission must remain as negotiating partner with Greece: Kauder
- “I don’t like the tone of voice out of Athens at all,” Kauder says. “That’s not the way to talk to one another in Europe.”
- “There are new proposals and new reports coming out of Greece all the time and all of Europe and beyond seems to be holding its breath,” Kauder says
- “A government should first of all reflect, should make concrete proposals and not present something new every day,” Kauder says
- “The new Greek government doesn’t create any trust this way,” Kauder says
All of this takes place after moments ago Merkel made the record-high DAX unhappy when she said the Greek talks would likely drag on for months [5].
And just like that, we are back to square one, even though futures are now almost 60 points higher form where they were this time yesterday.
Mission accomplished.
[6]
