In the Greek case, DSK suggests “learn from mistakes” – Le Figaro

The former finance minister posted on his twitter account a three-page statement. He gives advice to get out of the Greek crisis by suggesting again that States take their losses.

The former director of the International Monetary Fund (IMF), Dominique Strauss-Kahn, who was in command at the beginning of the Greek crisis came out of his silence Saturday to call on Europeans to accept a temporary suspension of payments of Athens. The former finance minister made the proposal in a three-page statement in English and French, entitled “Learning from mistakes” and mailed via his twitter account, while Greece has never been closer of default since the breakdown of negotiations Saturday with its Eurozone partners.

He suggests that “Greece no longer receive any new funding from the European Union and the IMF but that it has a very broad extension of the maturity and even a massive reduction in nominal debt to public institutions. ” European countries are still opposed to such a reduction of the Greek debt they hold. “This will free Greece from all obligations to the official sector (government institutions) for the next two years,” says the man who had participated in the early discussions on the risks associated with the colossal Greek debt (180% of GDP today) from 2010. “This will leave the country in a difficult budget constraint since it can not borrow on the markets, will no longer receive EU funding or the IMF and will need to balance its own budget,” argues yet Strauss-Kahn.

Speaking of “difficult budget choices” for the Greeks, he cites the tax reform, a battle “against the oligarchy, private interests and the weight of the unit of State “. They will make those choices “themselves”, without constraint from outside, he insists. If this idea works, Greece could become “eligible to gradual erasure of the debt,” said the former IMF dirceteur for whom “only the ten billion provided for the recapitalization of the banking system should be paid to allow the European Central Bank “to pursue its emergency assistance program. “It is not sure that it works,” acknowledges Mr. Strauss-Kahn, calling on Greek authorities to the courage and independence.

In his text, he criticized several times the character ” inept “or” disastrous “” severe fiscal adjustments “that were the rule in the euro area in the aftermath of the crisis. For him, “we indulge to repeat the same mistakes.” “Force the Greek government to sell would create a tragic precedent for European democracy and could start an uncontrollable chain reaction,” he says.