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A provisional GREXIT is the best solution

30 December 2015 / 17:12:53  GRReporter
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The economic wing of the German Christian Democratic Union (CDU) again criticized Greece for its feeble drive to carry out reforms and insufficient compliance with the conditions agreed with the creditors. In a statement to the German Press Agency (DPA), the Secretary General of the Economic Council of the CDU, Wolfgang Steiger, accused Athens of systemic non-adherence to the timetable for reforms.

"This is a matter that affects European credibility, to avoid constant negotiations for new debt rescheduling or cuts", argued Steiger. "Greece must not abuse the argument pointing to the dramatic situation created by the refugees to get rid of the reforms." Steiger, who is among the leaders of CDU's Economic Council (a business association with 11,000 members from all over Germany and a great deal of influence) believes it is increasingly clear that Greece's provisional exit from the eurozone, i.e. the Grexit wanted by Finance Minister Wolfgang Schaeuble and the majority of bondholders, would be the best solution.

"At the end of the day, the Eurozone needs clear rules for the exit of countries from the common currency as well as a process for declaring state bankruptcy", argued Steiger before dpa. He also criticized Greece's performance in privatisation qualifying the conditions the country laid down as unproductive. "The refusal to transfer some competences to a Brussels institution has proven unproductive. This is yet another question Schaeuble was right about when he insisted on removing the direct access of Greek politicians to it." The German Christian Democrat also emphasised that "Athens is not going to give up the hide and seek with its creditors."

It is worth recalling that a few days ago Wolfgang Steiger criticized sharply the monetary policy pursued by the European Central Bank and its head Mario Draghi. He said the ECB's massive scheme of buying government bonds and zero interest rates was chosen "without asking either the politicians, or the Europeans or the markets."

Tags: Grexit negotiations creditors debt reforms
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