“Learning from mistakes” DSK distills a lesson on Greece on … – TF1

After his enigmatic tweet, “Jack is back”, Dominique Strauss-Kahn has decided to be more talkative. In a new message posted on Twitter, the former IMF chief, who is back on the social network, called on Europeans to accept a suspension of payments to the Greece .

DSK, who was in charge of the financial institution at the beginning of the Greek crisis, released a link back to a three-page statement in English and French, entitled “Learning from mistakes”. An output that comes as Greece has never been so close to default since the breakdown of negotiations Saturday with its Eurozone partners.

DSK suggests that “Greece no longer receive any new funding from the European Union and the IMF but it has a very broad extension of the maturity and even a reduction massive debt rated against public institutions. ” European countries are still opposed to such a reduction of the Greek debt they hold.
Unlocking
Greece of all “obligations”

“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% 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 budget alone “, even argues Dominique 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 device of State “. They will make those choices “themselves”, without constraint from outside, he insists.

critical DSK “severe fiscal adjustments”

If this idea works, Greece could become “eligible progressive 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,” admits DSK, 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,” said he

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