Greece: Tsipras attacks the IMF, which remains open to relief … – Le Monde

Le Monde | 24/06/2015 at 11:09 • Updated 24/06/2015 at 7:15 p.m. | By Claire Guélaud

Among the Greek government and the International Monetary Fund (IMF), the tension remains strong. Wednesday, June 23, Prime Minister Alexis Tsipras lamented “the insistence of some institutions that do not accept compensatory measures” proposed by his government in order to take the financial targets set by creditors the country, reported a government source, quoted by AFP. Mr Tsipras was the IMF, has added another source.

The Greek government, in this case, rejected on Wednesday against-a proposal by its creditors, consisting mainly of the IMF wishes, told AFP a Greek government source.

“The cons-proposal” which insists, in Athens, on rising revenues from VAT and on more cuts important in public spending, came two hours after the Greek prime minister, Alexis Tsipras, had complained that the IMF does not accept “countervailing measures” proposed by Athens Monday during a country leaders meeting in Brussels the euro area, then considered positive by creditors.

stormy history

But in the sometimes stormy history of relations between the IMF and Greece, Washington institution is not only the big bad wolf ready to devour it raw 10 million Greeks. The IMF Managing Director, Christine Lagarde, the she will repeat to Alexis Tsipras, she met Wednesday, June 24 in Brussels? Or in she held in one review of its latest proposals? It remains, in any case, since the fall of 2012, the Athens ally on one point. That of the Hellenic debt relief, including European creditors, them, do not want to hear

Read also: The role of the IMF in proportion to the Greek crisis

At this time, the negotiation of the second aid package to Greece gave rise to an arm iron between M ^me Lagarde and European leaders. The Fund would avoid adding debt to debt. He proposed that the Europeans in exchange for an adjustment plan in Greece – that is, austerity – provide financial aid to Athens and agree to reduce the public debt if it exceeded 120% of GDP at the end of the decade.

This was for the Fund to leave on a healthier basis and to give a perspective of growth in Greece. In 2010 already, Nicolas Sarkozy and Angela Merkel had opposed the IMF on the partial annulment of the Greek private debt. Two years later, during a Eurogroup in November, Paris and Berlin have reluctantly accepted the terms of the agreement drafted by the Fund

Read also.: Greece: Europeans and the IMF divided

compromise

This compromise remains valid even if it has evolved to reflect the deterioration in the economy and Hellenic the coming to power of Syriza. The creditors of Greece now require it to reach a goal of primary surplus (before interest payments) from 1% in 2015 and 3.5% in 2017 (initially, the 3% to be achieved this year).

To do this, they intend to establish an expanded tax and reform pensions. The IMF chief economist, Olivier Blanchard, said on his blog that requirement:

“Why insist on pensions? With wages, they represent about 75% of primary expenditure; the remaining 25% have already been reduced to their simplest expression. Pensions constitute more than 16% of GDP [gross domestic product], and transfers from the budget to the pension system are close to 10% of GDP. We believe it is necessary to reduce pensions by 1% of GDP (about 16%) and it is possible to do this by protecting the poorest pensioners . “

26.7 billion euros

Mr. Blanchard also defends the need for a new effort of European creditors, under the double form of increased aid and debt relief via a “long rescheduling of maturities at lower interest rates” . “Any further reduction in the primary surplus target, today or tomorrow, would likely require haircuts” he warns.

The IMF estimates being far in its support for Greece. Athens got 30 billion dollars (26.7 billion euros) in aid, Ukraine and its 50 million inhabitants half. The newly entered countries in the euro area are tired of subsidizing a country that, unlike Portugal and Ireland, has always been in arrears in its payments. The 188 IMF member countries, including emerging irritated by the persistence of the Greek crisis and the fragility of the eurozone, do not include the IMF put the pot yet. Therefore the ball is in the camp of the Greeks, but also of their creditors – and taxpayers -. Europe