Friday, July 17, 2015

Merkel asks the Bundestag to vote the aid to Greece to avoid … – The Point

German Chancellor Angela Merkel on Friday called on an unusually dramatic tone to the Bundestag the green light to a third support plan to Greece to avoid the “chaos”. “There is no doubt that the result of Monday morning’s hard for people in Greece, but also for others” in the eurozone, said Merkel before parliamentary grant that had no problem at midday mandate to negotiate this third aid package of some 80 billion euros. “I know many of you have doubts and worries,” said Merkel, who also celebrated his 61st birthday Friday. “We would be acting completely irresponsibly if we were not trying to take that route,” she continued, because “the alternative option would be chaos assured.”

After about three hours of debate, the 631 German MPs, holiday express income for this special session, had to decide whether or not they give the green light for the negotiation of a third plan to support Greece, already subject to doubts and questions . Result of a “last attempt” negotiations without which Greece would have risked being “bled white”, this agreement request “unprecedented solidarity” for some and “unprecedented demands” for Greece, recognized Angela Merkel, in a speech about twenty minutes followed by interventions of the Vice-Chancellor, the Social Democrat Sigmar Gabriel, and Finance Minister Wolfgang Schäuble.

Rope sensitive

A “yes” of the Lower House of Parliament was clear. The coalition conservative / social democrats in power is sitting on an overwhelming majority (504 to 631), and can even count on the support of part of the opposition. Discontent in the conservative camp Merkel however clearly swollen in recent weeks, and should result in a non-fifty among CDU MPs / CSU (of 311). German public opinion is also divided, a poll published on Friday stating 49% opposition to new aid, and 46% of supporters. Quite unusually, Merkel played on the heartstrings, asking MPs outset to imagine Germany retirees queues at ATMs, as we have seen in recent days in Greece.

Earlier this week, Athens has agreed in pain with the currency bloc partners on the principle of a third aid package, giving it more than 80 billion euros, exchange of drastic reforms. Some have already been put back on track, as a token of goodwill and the price of political tensions in Greece, where Prime Minister Alexis Tsipras has lost his parliamentary majority. While in earlier this week relief prevailed in European capitals to have escaped the “Grexit” scenario feared exit of Greece from the euro, skepticism has taken over.

” Sure, this agreement is not a guarantee for the coming years, but it has avoided the risk of chaos of a Greek bankruptcy, “said President of the European Council Donald Tusk in an interview several European newspapers. The lack of enthusiasm is evident in Greece where, during a parliamentary debate new night, Mr. Tsipras reiterated that it was “at odds” with many aspects of the program. “I think nobody in this room is pleased with the agreement,” said Deputy Finance Minister Dimitris Mardas, pushing the nail. The Athens reluctance feed doubts about “the will and the capacity” of the Greek government to implement what he promised, for example, expressed Thursday by the President of the European Central Bank Mario Draghi.



And the debt?

This has not prevented the ECB to loosen the flange to Greek banks, closed since June 29, increasing the emergency lending ceiling that make them live, which should allow them to reopen Monday. Mario Draghi has also championed Thursday for an easing of the Greek debt, colossal at over 300 billion euros (180% of GDP), reaching the position of the International Monetary Fund (IMF), which are basis for participating to new aid plan. Negotiations on this subject ahead bitter, Berlin is categorically opposed to any reduction in the nominal value of the debt. Meanwhile, for stopgap including a refund of 4.2 billion euros at the ECB Monday, the EU should accept the principle of a Friday emergency funding, in the form of a loan of 7 billion euros.

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