Despite earlier commenting that Greek debt sustainability is hard without a write off, [4] German FinMin Schaeuble just told German lawmakers bluntly that there will be no Greek debt cut. What is problematic for Merkel and her minions is that Mario Draghi just confirmed what The IMF has been 'secretly' leaking - that it is "uncontroversial that Greek debt relief is necessary." As this confusion reigns, The Eurogroup has issued a statement "welcoming the adoption by the Greek parliament" of the measures [5] imposed upon the Greek people to drive them further into depression.
The Eurogroup issues a statement [5] - pleased that The Greeks will suffer some more for the cash they get...
The Eurogroup welcomes the adoption by the Greek Parliament of all the commitments specified in the Euro Summit statement of 12 July. On the basis of a positive assessment by the institutions, which concluded that the authorities have implemented the first set of four measures in a timely and overall satisfactory manner and which confirmed that the Euro Summit statement has been included in the preamble to the implementing law adopted by the Greek parliament, we reached today a decision to grant in principle a 3-year ESM stability support to Greece, subject to the completion of relevant national procedures.
Upon the completion of the relevant national procedures and the formal decision by the ESM Board of Governors expected by the end of this week, the institutions would be entrusted with the task of swiftly negotiating a Memorandum of Understanding (MoU) detailing the policy conditionality attached to the financial assistance facility.
The Eurogroup calls on the Greek authorities to swiftly adopt the second set of measures by 22 July as foreseen in the Euro Summit statement, and update the legislation related to the first set of measures consistent with the recommendations made by the institutions in their compliance report.
So further austerity drives Greece deeper into depression and so ECB President Draghi says...
- *DRAGHI SAYS GREEK DEBT RELIEF IS NECESSARY
- *DRAGHI: UNCONTROVERSIAL THAT GREEK DEBT RELIEF IS NECESSARY
Pretty clearlt agreeing with The IMF's recommendations.
But Schaeuble says "Nein"
German Finance Minister Wolfgang Schaeuble told a closed-door meeting of parliament’s Budget Committee in Berlin that European rules don’t allow a cut in the face value of Greek sovereign debt, according to Eckhardt Rehberg, a lawmaker on the committee from Chancellor Angela Merkel’s Christian Democratic Union.
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But apart from that - thanks to a €900 million ELA extension - everything is awesome in Greece (and therefore Europe).
