Monday

15th Aug 2022

Germany warns Greece to stick to reforms after elections

  • Elections are set for 25 January (Photo: YoungJ523)

German finance minister Wolfgang Schaeuble has warned Greece that it needs to stick to reform promises no matter who comes to power after snap elections, set to be held on 25 January.

"The tough reforms are bearing fruit and there is no alternative to them," said Schaeuble on Monday (29 December) after the Greek parliament earlier the same day failed for a third time to elect a new president, triggering the general election.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

"We will continue to help Greece help itself on its path of reform. If Greece takes another path, it will be difficult," Schaeuble said.

He also noted that any new government would have to stick to pledges made by the outgoing conservative government of Antonis Samaras.

"New elections will not change the agreements we have struck with the Greek government," the German minister noted.

The strong reaction from Berlin reflects uncertainty about what January's vote will mean for Greece's committments under its bailout programme, as it may sweep the anti-austerity, debt-restructuring Syriza to power.

Syriza, led by Alexis Tsipras and currently topping the polls, has said it wants to renegotiate its bailout terms with Greece's creditors - the European Commission, European Central Bank (ECB) and International Monetary Fund (IMF) - including a major write-off of eurozone-held debt.

EU officials have viewed the prospect of a Syriza-led government with increasing nervousness.

EU economics commissioner Pierre Moscovici reacted to the news by saying that a "growth-friendly reform process" is "essential for Greece to thrive again".

However, earlier this month in an interview with the Financial Times, the top official spoke more frankly.

"The idea of contemplating not reimbursing debt, is, in my view suicidal, with a risk of default," said Moscovici.

The ECB reacted to the political situation by saying it would "wait for the views and suggestions of the Greek authorities on how to best proceed with the review" while the IMF said financial aid to the country would be suspended until a new government is formed.

Meanwhile, inside the country, political parties are already staking out their positions ahead of the vote.

“I am here to ensure that we do not allow anyone to put in danger or doubt Greece’s position in Europe,” said prime minister Samaras, according to Greek daily ekathimerini

He called the elections "the most crucial" of the last decades.

Tsipras, for his part, said the main centre-right and centre-left parties would seek to discredit his party.

“They will use lies, monstrous lies about Syriza, its intentions and its policies,” he noted.

Greece has had two bailout programmes, worth €240bn, but has been required to carry out major reforms and spending cuts in return.

It currently has an unemployment rate of 25.5 percent and its economy is only just beginning to recover after six years of contraction.

Opinion

The eurozone's debt moment

After Greek elections, Brussels and Berlin can no longer shun the issue of debt relief.

Brazil pitches itself as answer to Ukraine war food shortages

Brazilian president Jair Bolsonaro is pitching his Latin American country as the answer to the world food crisis following the war in Ukraine. The traditional wheat importer has now exported three million tonnes of the grain so far in 2022.

News in Brief

  1. Zelensky vows to 'target' Russian soldiers at nuclear plant
  2. Putin vows greater cooperation with North Korea and Taliban
  3. Hungarian judge slams Orbán's rule-of-law attacks
  4. Borrell condemns 'despicable' Rushdie attack
  5. Slow wind-farm approvals risk green goals, warns industry
  6. Increase in people crossing Channel to UK in 2022
  7. Swedish government to toughen gang-crime penalties
  8. Germany to help nationals cope with energy price spike

Stakeholders' Highlights

  1. EFBWW – EFBH – FETBBConstruction workers can check wages and working conditions in 36 countries
  2. Nordic Council of MinistersNordic and Canadian ministers join forces to combat harmful content online
  3. European Centre for Press and Media FreedomEuropean Anti-SLAPP Conference 2022
  4. Nordic Council of MinistersNordic ministers write to EU about new food labelling
  5. Nordic Council of MinistersEmerging journalists from the Nordics and Canada report the facts of the climate crisis
  6. Council of the EUEU: new rules on corporate sustainability reporting

Latest News

  1. Germany needs to cut gas use by 20% to stave off winter crisis
  2. Europe's wildfire destruction set to hit new record
  3. How Putin and Erdoğan are making the West irrelevant
  4. Defying Russian bombs, Ukraine football starts 2022 season
  5. Sweden to extradite man wanted by Turkey
  6. EU must beware Beijing's new charm offensive
  7. Forest fire near Bordeaux forces over 10,000 to flee
  8. Estonia and Latvia sever China club ties

Join EUobserver

Support quality EU news

Join us