Saturday

24th Jun 2017

Schaeuble: Greece has 'no alternative' to austerity

  • (Photo: World Economic Forum)

German finance minister Wolfgang Schaeuble on Monday (14 January) urged Greek opposition leader Alexis Tsipras to drop his opposition to bailout-linked austerity measures, saying there is "no alternative" if Greece wants to stay in the eurozone.

It was the first time the veteran minister and ally of Chancellor Angela Merkel received the young leftist leader, who has blamed Germany for the hardships which Greek people are enduring.

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"If there are disagreements, it is good to have a dialogue," Schaeuble's spokeswoman Silke Bruns told a press briefing on Monday morning.

After the meeting, the positions of the two men did not appear to have moved any closer, however.

According to one official, Schaeuble told Tsipras "unequivocally that there is no alternative to the path already taken, the implementation of an economic adjustment programme."

The German minister urged Tsipras to back the programme, which includes recently-passed changes on income tax which Tsipras' party, Syriza, voted against.

A recent upgrade by six notches in Standard & Poor's rating of Greek debt is proof the reforms are working, Schaeuble said.

For Tsipras, what matters more are the legions of unemployed people and hospital patients with inadequate care, whose situation, he said, is getting tougher each day as government slashes expenditure to please creditors and markets.

"Austerity is like a bad medicine for the patient. We have to stop austerity," he told this website on the eve of the meeting.

It was the same message he repeated in his talks with Schaeuble, he said afterwards.

Greece is currently in its sixth year of recession.

It has had two bailouts and a partial reduction of its debt. Unemployment is at almost 27 percent, suicide rates have gone up and the neo-Nazi "Golden Dawn" party is growing in popularity.

Greek opposition leader 'vindicated' by IMF

Greek opposition leader Alexis Tsipras feels "vindicated" by the IMF's recent change of tone on austerity, he told this website ahead of a meeting with the German finance minister.

Greek taxmen may be dodging taxes, too

Tax inspectors in Greece are underpaid, work in poor conditions and 130 of them have bank accounts abroad - possibly for tax evasion, a report by the IMF and EU says.

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Row between EU ministers halts e-book tax rate

A bill to reduce VAT rates on e-books and e-publications has become the latest victim of a row between the Czech Republic and its partners over its own plan to collect VAT.

Focus

EU and China move to fill US void

At a summit in Brussels, EU and Chinese leaders will attempt to deepen ties on trade and climate as US president Trump plans to pull out of the Paris climate deal.

Italy reaches EU deal on failing bank

After months of negotiations, the European Commission and Italy agreed on the terms of rescue for Monte dei Paschi di Siena bank, including job cuts, salary caps and private sector involvement in the bailout.

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