In order to stay in the Eurozone, the Greek Prime Minister Alexis Tsipras accepted to make almost the same proposals that were rejected during the Greek Bailout Referendum of 25 June 2015. In spite of this, these are the comments of the Minister of Finance of Germany, Wolfgang Schäuble, to the proposal of the Greek government.

On 9 July 2015 Greece has submitted a list of proposals. These proposals are based on and even fall behind the latest aide memoire that was drafted by the Troika to conclude the review under EFSF. However Greece was notable to conclude the review.

These proposals lack a number of paramount important reform areas to modernize the country, to foster long term economic growth and sustainable development. Among these, labour market reform, reform of public sector, privatisations, banking sector, structural reforms are not sufficient.

This is why these proposals can not build the basis for a completely new, three year ESM program, as requested by Greece. We need a better, a sustainable solution, keeping the IMF on board. There are 2 avenues now:

1. The Greek authorities improve their proposals rapidly and significantly, with full backing by their Parliament. The improvements must rebuild confidence, ensure debt sustainability upfront and the successful implementation of the program – so as to ensure regained market access after completion of the program. Improvements include:

a) transfer of valuable Greek assets of [50 bn] Euros to an external fund like the Institution for Growth in Luxembourg, to be privatized over time and decrease debt; b) capacity-building and depolitizising Greek administrative tasks under hospices of the COM for proper implementation of the program; c) automatic spending cuts in case of missing deficit targets.

In parallel, a set of financing elements would be put together to bridge the time gap until a first disbursement under the enhanced program could be made. This means the existing risk of not concluding a new ESM program should rest with Greece, not with Eurozone countries.

2. In case, debt sustainability and a credible implementation perspective can not be ensured upfront, Greece should be offered swift negotiations on a time-out from the Eurozone, with possible debt restructuring, if necessary, in a Paris Club – like format over at least the next 5 years. Only this way forward could allow for sufficient debt restructuring, which would not be in line with the membership in a monetary union (Art. 125 TFEU).

The time-out solution should be accompanied by supporting Greece as an EU member and the Greek people with growth enhancing, humanitarian and technical assistance over the next years. The timeout solution should also be accompanied by streamlining all pillars of the Economic and Monetary Union and concrete measures to strengthen the governance of the Eurozone.

You can download the document HERE

La entrada Comments on the latest Greek proposals by Wolfgang Schäuble aparece primero en Auditamos Grecia.

La entrada Greek Proposal for Third Bailout aparece primero en Auditamos Grecia.

The referendum of 5^th July will stay in history as a unique moment when a small European nation rose up against debt-bondage.

Like all struggles for democratic rights, so too this historic rejection of the Eurogroup’s 25th June ultimatum comes with a large price tag attached. It is, therefore, essential that the great capital bestowed upon our government by the splendid NO vote be invested immediately into a YES to a proper resolution – to an agreement that involves debt restructuring, less austerity, redistribution in favour of the needy, and real reforms.

Soon after the announcement of the referendum results, I was made aware of a certain preference by some Eurogroup participants, and assorted ‘partners’, for my… ‘absence’ from its meetings; an idea that the Prime Minister judged to be potentially helpful to him in reaching an agreement. For this reason I am leaving the Ministry of Finance today.

I consider it my duty to help Alexis Tsipras exploit, as he sees fit, the capital that the Greek people granted us through yesterday’s referendum.

And I shall wear the creditors’ loathing with pride.

We of the Left know how to act collectively with no care for the privileges of office. I shall support fully Prime Minister Tsipras, the new Minister of Finance, and our government.

The superhuman effort to honour the brave people of Greece, and the famous OXI (NO) that they granted to democrats the world over, is just beginning.

La entrada Minister No More! aparece primero en Auditamos Grecia.

05/07/2015, 23:30 – Press release 556/15 – Euro area: Economy & finance

I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece. For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities. The Eurogroup will discuss the state of play on Tuesday 7 July.

Jeroen Dijsselbloem

Download official statement HERE

La entrada Statement of the Eurogroup President following the referendum in Greece aparece primero en Auditamos Grecia.

Text extracted from Reuters.

My fellow Greeks,

For the past six months the Greek government has been giving battle in conditions of unprecedented economic asphyxiation, to implement your mandate, of Jan. 25. It was a mandate to negotiate with our partners to end austerity and to restore prosperity and social justice to our country.

(It was) for a viable agreement which would respect both democracy, common European rules and would lead to a definitive exit from the crisis.

Throughout this negotiation period, we were asked to adopt bailout agreements which were agreed with previous governments, even though these were categorically condemned by the Greek people in the recent elections.

But we did not, even for a moment, contemplate yielding. That is, to effectively betray your own trust.

After five months of tough negotiations our partners, unfortunately, concluded at the Eurogroup the day before last with a proposal, an ultimatum, to the Hellenic Republic and the Greek people.

An ultimatum which contravenes the founding principles and values of Europe. The value of our common European structure.

The Greek government was asked to accept a proposal which accumulates unbearable new burdens on the Greek people and undermines the recovery of Greek society and its economy, not only maintaining uncertainty, but by amplifying social imbalances even further.

The proposals of the institutions include measures which lead to a further detribalization of the labor market, pension cutbacks, new reductions in public sector salaries and an increase in VAT on food, eateries and tourism, with an elimination of tax breaks on the islands.

These proposals clearly violate European social rules and fundamental rights to work, equality and to dignity, proving that the aim of some partners and institutions was not a viable and beneficial agreement for all sides, but the humiliation of the entire Greek people.

These proposals prove the fixation, primarily of the International Monetary Fund, to tough and punitive austerity.

It makes it more imperative than ever that leading European forces rise to the occasion and take initiatives which will draw a line under Greek debt, a crisis which also affects other European countries, threatening the future of European unification.

My fellow Greeks, we are now burdened with the historic responsibility, (in homage to) to the struggles of the Hellenic people, to enshrine democracy and our national sovereignty.

It is a responsibility to the future of our country. And that responsibility compels us to answer to this ultimatum based on the will of the Greek people.

A while ago I convened the cabinet, where I suggested a referendum for the Greek people to decide in sovereignty.

The suggestion was unanimously accepted.

Tomorrow the plenary of the Greek parliament will convene to ratify the proposal of the cabinet for a referendum next Sunday, July 5, posing the question of the acceptance or rejection of the proposal by the institutions.

I have already communicated my decision to the President of France and the German Chancellor, the President of the ECB, while tomorrow in correspondence to the EU leaders and institutions I will formally request a few days extension of the (bailout) program so the Greek people can decide, free of pressure or coercion, as is dictated by the Constitution of our country and the democratic tradition of Europe.

My fellow Greeks,

To this blackmail-ultimatum, for the acceptance on our part of a strict and humiliating austerity (proposal), and with no end to it in sight nor with the prospect of allowing us to ever stand on our feet economically or socially, I call upon you to decide sovereignly and proudly, as the history of Greeks dictates.

To this autocratic and harsh austerity, we should respond with democracy, with composure and decisiveness.

Greece, the cradle of democracy, should send a strong democratic answer to Europe and the world community.

I am personally committed to respect the result of your democratic choices, whatever those may be.

I am absolutely certain your choice will honor the history of our country, and send a message of dignity to the whole world.

In these crucial hours, we must all remember Europe is the common home of its people. There are no owners or guests in Europe.

Greece is, and will remain an indispensable part of Europe and Europe an indispensable part of Greece. But Greece without democracy is a Europe without identity or a compass.

I call upon you all to take the decisions worthy of us.

For us, future generations, for the history of Greeks.

For the sovereignty and dignity of our people.

La entrada Alexis Tsipras’ Speech, calling for a referendum aparece primero en Auditamos Grecia.

Since the 20 February 2015 agreement of the Eurogroup on the extension of the current financial assistance arrangement, intensive negotiations have taken place between the institutions and the Greek authorities to achieve a successful conclusion of the review. Given the prolonged deadlock in negotiations and the urgency of the situation, institutions have put forward a comprehensive proposal on policy conditionality, making use of the given flexibility within the current arrangement.

Regrettably, despite efforts at all levels and full support of the Eurogroup, this proposal has been rejected by the Greek authorities who broke off the programme negotiations late on the 26 June unilaterally. The Eurogroup recalls the significant financial transfers and support provided to Greece over the last years. The Eurogroup has been open until the very last moment to further support the Greek people through a continued growth-oriented programme.

The Eurogroup takes note of the decision of the Greek government to put forward a proposal to call for a referendum, which is expected to take place on Sunday July 5, which is after the expiration of the programme period. The current financial assistance arrangement with Greece will expire on 30 June 2015, as well as all agreements related to the current Greek programme including the transfer by euro area Member States of SMP and ANFA equivalent profits.

The euro area authorities stand ready to do whatever is necessary to ensure financial stability of the euro area.

[1] Supported by all members of the Eurogroup except the Greek member.

La entrada Eurogroup statement on Greece aparece primero en Auditamos Grecia.

Alexis Tsipras’ proposal, that will be carried to his meeting with the Troika representatives today, has many possibilities of being rejected by the Eurogroup, as there are important disagreements, even if the mainstream media talks about “progress”. In any case, different European Parliaments (including the Greek one) will have to approve it subsequently in plenary session.

What seems clear is that without an important release of the illegitimate debt, there doesn’t seem to be a fair path for the Greek population, that sees day by day how they are brushed aside by the creditors.

You can download the proposal HERE.

La entrada Greece proposal to the Troika aparece primero en Auditamos Grecia.

Zoé Konstantopoulou defended the starting of  “Truth Commission”, which would issue Greek Public Debt. Spanish Citizen Debt Audit Platform (PACD) collaborates with the Greek audit.

Originally Published by CADTM

Ladies and Gentlemen, thank you for being here today at an event that is of historic importance and marks the beginning of the repayment of a true debt: to reveal the truth and be accountable to the Greek people and society about how the debt hanging over the heads of all citizens and of the young ones in particular originated and increased / was created and has ballooned. The public debt that is being used as an instrument of blackmail and subjugation, as a tool of submission in conditions that are far removed from the ecumenical principles of democracy, equality, equity, respect for human rights and freedoms and social progress and are leading to shrinking democratic spaces, discrimination, exclusion, extreme poverty and a humanitarian crisis.

La entrada Speech by the President of the Hellenic Parliament on Public Debt aparece primero en Auditamos Grecia.