Saturday, March 21, 2015

European Union: Why Greece and Germany are … – FranceTV info

Elected in January 2015, the Prime Minister Alexis Tsipras, resulting from the radical left party Syriza, continues to fight to curb the austerity policies promoted by the troika (European Commission, ECB, IMF). He met the night of Thursday 19 to Friday 20 March, François Hollande, Merkel representatives of European institutions. His hope: to obtain immediate financial support. But he refused by its partners who claim quickly, the establishment of reforms promised in late February .

Tsipras said, following: “It is clear that Greece is not obliged to apply the austerity measures agreed by the previous government (…) Greece. will submit its own structural reforms to its European partners. “ For European partners, it must be understood, in particular Germany, which has stood since the beginning of the crisis of public debt in 2010 a strict austerity policy European.

A fundamental antagonism with the new Greek government team, who intends to terminate the rigor, without quarrel with Europe. This balancing act is complicated by the animosity between Athens and Berlin. The main reasons for this contention.



They disagree on austerity

economic leader in Europe, Germany defends economic rigor that characterizes its policy since the reforms of the former Social Democratic chancellor Gerhard Schröder, in the early 2000s controlled deficit, more flexible labor market … It’s hard to accept for Tsipras and his ministers, elected on a program that broke with austerity in force.

Tsipras has already had to accept its sights lower. He who promised an increase in the minimum wage, free health care for the unemployed and many subsidies for the poor Greeks had to relegate social emergency at the end of the list of reforms.

To convince Germany, he is about to modernize its administration by reducing the number of ministries and costs granted to political parties and parliamentarians. It will also increase taxes on tobacco, reshape the tax base to make it more fair and intensify the fight against tax fraud. One small satisfaction: anti-corruption measures, welcomed by Germany, were already in the program

The two finance ministers have nothing in common

Yanis Varoufakis and Wolfgang Schäuble respective Ministers of Finance of Greece and Germany, are poles apart from each other. The first is irreverent and nonchalant. The second never leaves his suit, seriousness and strict course of the German budget seriously. “Varoufakis and Schäuble, it’s a culture shock, a manly fight” , says an observer quoted by Expansion.

Everything started off well. In an interview with the German weekly Stern , Varoufakis calls his counterpart “only European politics with intellectual consistency” . But Tsipras refused the first agreement negotiated by his minister. At the next Eurogroup, the European ministers, scalded, camping on tougher positions and Varoufakis refuses requirements other than those he had accepted seven days earlier. The break seems to be consumed. “I see nothing that makes our lives easier in everything Varoufakis undertaking” , sorry, late February, the German Minister, calling his counterpart “naive” .

Since then, tensions have had time to fall. But a video briefly given fuel to the fire. Excavated by the German ARD, the images show Varoufakis making a finger to the evocation of German conditions. Since then, the presenter of a satirical program on another German broadcaster admitted rigging the video.



There is a strong dispute since World War

This is the most complex issue that pits two Member States. He debt that Berlin has never paid to Athens after the Second World War. But that Berlin believes “legally settled.”

In 1945, particularly affected by the fighting (Germany invaded the country from 1941 to 1944), Greece may claim major repairs. The Allies encrypt the injury to Athens to $ 7 billion at the time, or 108 billion in present value of inflation, according to a calculation of Syriza in 2012. Besides interest.

But in 1953, the London Agreement, by which the Federal Republic of Germany (FRG) recognizes some of its past debts, pushes the payment of reparations to a treaty of peace later. The 1990 reunification treaty fulfills this role. What about repairs? He did not mention. Berlin, end of the case. Except that Greece has not participated in the negotiations of the 1990 Treaty.

Add to that a forced loan from the Bank of Greece to Germany in March 1942. Greece was then occupied lent 476 million Reichsmarks (52 billion euros in 2012) to zero. This loan was never repaid and the Treaty of London did not mention. In total, some lawyers evaluate all of the debt to $ 600 billion. Syriza party, when he was in opposition in 2012, amounted to 1 000 billion.

The estimates of the remaining debt vary, but all represent a significant portion of the 315 billion euros public debt of Greece today. Except that Berlin refused to reopen the debate. “Germany is fully aware of its historical responsibility, but it does not change our position and our firm conviction that the issue of reparations and compensation for Greece was resolved” , said the spokesman of German Chancellor.

The Greek government does not seem to have any illusions. But as shown by Alexis Tsipras tribute to the victims of a Nazi massacre, he intends to do weigh in the balance of the negotiations.

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