World Quintet - Euro Crisis: Troika Proposes Debt Relief For Greece

Hamburg ? The troika of the EU Commission, the European Central Bank (ECB) and International Monetary Fund (IMF) proposes to SPIEGEL information before another debt restructuring for Greece. In order for the euro bailout taxpayers would for the first time really cost money. Because above all the public creditors of the stricken country to participate in this time of the action and give up a large part of their claims. The Troika representatives presented their proposal last Thursday at a preparatory meeting for the next meeting of finance ministers of the euro zone. Participants were senior officials from finance ministries of member countries. The plan met by SPIEGEL information on the resistance of a number of countries, including Germany. Many country representatives said they would not lose the money that I will forgive their government for support payments to Greece. Finance Minister Wolfgang Schäuble (CDU) turned strictly in an interview with Germany radio against a new debt. The budget law prohibits it, a debtor such as Greece, of its demands Operating the not straight, even to give more money. "That's why this is a discussion that has little to do with reality in the member states of the euro zone. "Realistically there is a debt buyback program. Thus, the highly indebted euro country would buy back old bonds with new loans at market rates. According to SPIEGEL information to the ECB, which itself holds around 40 billion euros in Greek government bonds, not to participate in the plan of the Troika haircut because her this form of state funding is prohibited. However, the central bank agreed to make their profits, which they achieved with the Greek bonds, are available. These arise because the central bank buying up securities well below their face value at the maturity of the nominal value but gets reimbursed. Athens had initiated only 60 percent of the required reforms, says the interim report submitted by the troika continue. 20 percent were currently being discussed by the Greek government, 20 percent stood. The paper is one of the troika to 150 new reform proposals that will implement Athens, including an easing of employment protection, a softening of the minimum wage and repealing certain profession privileges. Draghi stands behind Schäuble also suggested the round before measures to force the Greek government to reform: This involves the establishment of a blocked account on which the loan tranches are parked, and a law for greater control of fiscal policy. If Athens implements the reforms as agreed, for example, would automatically increase the taxes. Bring to rethink budget in order to get Greece two years more time. The extension will cost according to the EU Commission and the ECB about 30 billion euros, the IMF more expects 38 billion. Troika final report to be presented by Greece on 12 November will be presented. In the discussion about the future of power in the EU, the President of the European Central Bank (ECB), Mario Draghi, backed the proposal of Finance Minister Wolfgang Schäuble (CDU) to expand the powers of the EU monetary commissioner clearly. "I support the proposal explicitly," Draghi said in an interview with SPIEGEL. Draghi: "Countries must submit sovereignty" Schäuble had requested the transfer budget commissioner to direct access to the budgets of euro countries. "I'm sure that if we are to restore confidence in the euro zone, the countries need to cede some of their sovereignty to the European level," said Draghi. Draghi urged to advance the integration of the euro area continue. To restore confidence, would require not only rules, said the ECB chief. "You also need to ensure that these rules are followed. It has been lacking in the past, because governments must work. "Draghi also defended the decision of the ECB, in an emergency purchase unlimited government bonds of euro-crisis states. The interest rates in some European countries have included charges for speculation about a collapse of the euro zone. "These speculations were unfounded, and therefore we had to be against it," he said. Draghi further stressed that he did not expect a loss to taxpayers from the shops, "on the contrary, now we have our bond purchases even made profits that flowed to the national central banks," said Draghi. If governments in Southern Europe continued their successful reform policies in recent months, which will also be in the future. The plan, the ECB transferred to future banking supervision, Draghi defended. He also criticized the work of the former, national supervisors. "Again and again in the past difficulties were hushed up in the banking sector. "To fight with Bundesbank President Jens Weidmann said Draghi:" I would hope that some discussion would run somewhat controlled. "Weidmann and he had but still" very understanding "for each other. "We have the same goal, and our disagreements about the proper instruments are not insurmountable. "Read the full interview with Draghi at the new MIRROR. Here you can buy the book directly or take out a subscription.

Source: http://www.worldquintet.com/euro-crisis-troika-proposes-debt-relief-for-greece/

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