Greece urged to act by the G20 – The World

Le Monde | 04/20/2015 at 6:59 • Updated 20/04/2015 at 10:19 | By Claire Guélaud

A reform program, documented, encrypted, to be able bénéficer of crucial financial support and therefore remain in the euro. The pressure on the Greek government does not relax, while a new Eurogroup (meeting of ministers of euro zone finance) will be held Friday, April 24. These requests were hammered in last weekend by the various participants in the G20 finance and / or leadership of the International Monetary Fund (IMF) meeting in Washington.

They were reiterated on Monday 20 April in the morning, by the European Commissioner for Economic Affairs, Pierre Moscovici: “You really now, and there is no time to lose, the Greek government produce the reforms being asked “, has he said on iTV. “My job is not to prepare for the exit of Greece is to avoid it. I have no plan B, I have a plan A. Plan A is Greece in the eurozone, but Greece remains in the euro area, it is now necessary reforms, we can not procrastinate, “ added Mr Moscovici

During the weekend, after several representatives of the G20 -. Germany, through its finance minister, Wolfgang Schäuble, Anglo-Saxon countries, but also several emerging – had expressed concerns about Greece, the IMF managing director Europe, Poul Thomsen, and the president of the European Central Bank (ECB), Mario Draghi, put the points on the “i”. They urged the government to take Alexis Tsipras into high gear to find common ground with its creditors.

Mr. Thomsen estimated that Greece remained a long way to accomplish to reach an agreement with the IMF and the time was short, especially given the expected maturities of repayment of the interest of the Greek debt: $ 21 billion in total over the months June, July and August, not to mention the billion due to the IMF in May.

“Working more»

Asked about the consequences of a possible output of the euro in Greece in case of default, the top international official described a situation of “major challenge” for the euro area. The negative effect on the confidence of Europeans of such event should not be underestimated, he said.

“We all want Greece to succeed” , said on Saturday 18 April, the President of the ECB. “The answer lies in the hands of the Greek government. We must now work much more and it’s urgent, “ he insisted, confirming by implication, as was brutally revealed Mr Schäuble, that no one knew when it would be possible to stop a compromise with Mr. Tsipras.

The list and details of the reforms that he is ready to commit to unlock the financial assistance it urgently needs have still not been clarified. Pension reform seems a bone of contention between Athens and continuing the Fund. Like Mr Schäuble, no one seemed to believe, Sunday, April 19, the possibility of an agreement, Friday, April 24, the Eurogroup Riga (Latvia).

Read also: Why negotiations with Greece protracted

Possibility of capital flow controls

Beyond the Greek case, the IMF has sometimes made amends. Mexican Agustin Carstens, new Chairman of the International Monetary and Financial Committee (IMFC) – one of the governance of the IMF – has acknowledged Saturday that “some current problems were created by policies that initially helped us us out of the most complicated aspects of the financial crisis’ . Comment likely to ultra-accommodative monetary policies of central banks …

“The global economic inequalities have declined in recent years, but further rebalancing of demand is still necessary,” also said the IMFC in a statement. The Committee reiterated that he did not rule, in case of large and volatile flows of capital, the ability to control measures.

As for the reform of the IMF in 2010, not ratified by US Senate, which was double the resources of the Fund and give more room for big emerging, there has been no breakthrough in Washington.

Brazil, Russia and India defend always a significant increase in quotas and the major emerging voting rights (at the risk of losing the US right of veto).

Christine Lagarde proposes a “ad hoc increase “ of assessment that takes into account the degree of dilution that the United States is prepared to accept.

Finally, China, eager to be better recognized, is also seeking the renminbi into the basket of currencies that make up the Special Drawing Rights of the Fund.