Greece faces call to put off elections
- The Times
- February 20, 2012
According to diplomats close to the talks, ministers meeting in Brussels tonight to decide on a E130 billion ($159bn) loan package may require a delay to the Greek election due in April so the nation's unelected technocratic government can implement harsher austerity measures.
Germany's demand, which will strengthen Greek claims the rescue package is undemocratic, is being pressed by Finance Minister Wolfgang Schaeuble and supported by The Netherlands, Finland and Italy, which, like Greece, is ruled by unelected technocrats.
Mr Schaeuble said yesterday he felt sympathy for the people of Greece. "The large majority of those hit by the reforms and austerity measures - and let me express my great respect for them - are not responsible for the backlog of reforms, the loss of competitiveness or unproductive use of funds in the past," he told the Tagesspiegel, after criticism of his call last week for Greece not to hold early elections.
But Mr Schaeuble said while Greek anger at the cuts in minimum wages was understandable, they would still be "about on the same level as those of Spain".
He added: "What should the people in eastern Europe and the Baltic countries say, where the minimum salary is still much lower, but which also contribute to help Greece?"
The eurozone intends to draw a line under the second Greek bailout with a deal that finance chiefs hope will quell suggestions Athens could be pushed out of the currency area. After several false starts, a strong political and financial signal is now anticipated when the eurogroup of finance ministers meet in Brussels.
The Italian government said German Chancellor Angela Merkel, Italian Prime Minister Mario Monti and Greek Prime Minister Lucas Papademos were "confident a deal can be reached on Greece at the eurogroup".
As one negotiator said: "The Greek government might not get everything it wants going forward, but if it tries really hard, it will now get what it needs."
Meanwhile, China's leader-in-waiting, Xi Jinping, told The Irish Times the economic problems facing the EU, Beijing's biggest trading partner, "are temporary".
The conditions attached to the Greek loan are already expected to include setting up a team of international monitors in Athens to veto national spending decisions if necessary.
Under the plan, officials from the troika of the European Commission, the European Central Bank and the International Monetary Fund will establish a permanent office in Athens to exercise day-to-day control of national spending.
Additional reporting: AFP
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