Saturday

27th Aug 2016

Germany stalls Greek bailout money

Germany is stalling the payment of a €2.5 billion bailout tranche to Greece, pending further job cuts in the public sector.

The tranche was supposed to have been paid earlier this month, but Athens will likely have to wait another week untill all 22 "prior actions" are met and the Bundestag gives its blessing.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

  • Greece is waiting for a €2.5 billion tranche (Photo: Constantine Gerontis)

"There is a preliminary report by the troika, saying that most prior actions are met, but some are still outstanding," Hans Joachim Narzynski, a spokesman for the German finance ministry said Wednesday (24 July) in a press conference.

He said the final troika report is expected "very soon", with the Greek parliament set to adopt one last measure on Thursday related to further public sector cuts.

Some 4,200 public sector workers, including teachers and doctors, will be put in a "labour mobility scheme", which should be boosted to 12,500 by September and another 12,500 in December.

A teleconference between eurozone finance officials took place on Wednesday and another one will be called on Thursday, but a final green light is not expected before 29 July, after the relevant committee in the Bundestag gives its approval.

The €2.5 billion are only part of a larger tranche of €6.8 billion which Greece should receive by end October. Eurozone finance ministers earlier this month decided to break the tranche into several parts and link each of them to precise cuts and privatisations.

A few hundred doctors and nurses protested in Athens on Wednesday against the planned job cuts, as the capital's six major hospitals are to be merged and reduced in size.

Trade unions also staged a 24-hour strike against the troika-imposed measures, in a country where three years of austerity and recession have also seen violent clashes with police.

German finance minister Wolfgang Schaeuble visited Athens last week in a bid to soothe the anger of the Greek people against what they see as a German-imposed austerity diktat.

"This visit is an expression of our confidence in, and support for Greece. I have not come as a teacher to give lessons," he said back then.

But without Athens fulfilling all the promised cuts, Schaeuble is not willing to give his green light to the disbursement of further money.

News in Brief

  1. Hungary plans to reinforce border fence against migrants
  2. France's highest court suspends burkini ban
  3. Greeks paid €1bn more in taxes in June
  4. Greek minister denounces EU letter on former statistics chief
  5. Turks seeking asylum in Greece may cause diplomatic row
  6. Merkel becomes digital resident of Estonia
  7. Report: VW will compensate US dealers with €1bln
  8. EU mulls making Google pay news media for content

Stakeholders' Highlights

  1. GoogleBrussels - home of beer, fries, chocolate and Google’s Public Policy Team - follow @GoogleBrussels
  2. HuaweiSeeds for the Future Programme to Bring Students from 50 countries to China for Much-Needed ICT Training
  3. EFASpain is not a democratic state. EFA expresses its solidarity to Arnaldo Otegi and EH Bildu
  4. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  5. HuaweiMaking Cities Smarter and Safer
  6. GoogleHow Google Makes Connections More Secure For Users
  7. EGBAThe EU Court of Justice Confirms the Application of Proportionality in Assessing Gambling Laws
  8. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests
  9. Dialogue PlatformInterview: "There is a witch hunt against the Gulen Movement in Turkey"
  10. ACCAACCA Calls for ‘Future Looking’ Integrated Reporting Culture With IIRC and IAAER
  11. EURidNominate Your Favourite .eu or .ею Website for the .EU Web Awards 2016 Today!
  12. Dialogue PlatformAn Interview on Gulen Movement & Recent Coup Attempt in Turkey