Arab Today, arab today merkel battles worries about imf involvement in greek bailout
Last Updated : GMT 06:33:06
Arab Today, arab today
Arab Today, arab today

Merkel battles worries about IMF involvement in Greek bailout

Arab Today, arab today

Arab Today, arab today Merkel battles worries about IMF involvement in Greek bailout

German Chancellor Angela Merkel
Berlin - AFP

German Chancellor Angela Merkel insists the International Monetary Fund must participate in Greece's new bailout, but doubts about IMF involvement are complicating her bid to sell MPs the deal ahead of Wednesday's key parliamentary vote.

Monday's front page of mass-circulation daily Bild accused Merkel of breaking her promise that the IMF would be party to the new 86 billion euro ($95 billion) Greek bailout approved by eurozone finance ministers Friday.

The Fund, whose chief Christine Lagarde has called the plan "a very important step forward," has said it will wait until October to decide whether to participate in it.

But that is two months away, and Merkel and her Finance Minister Wolfgang Schaeuble need to secure the backing Wednesday from the German lower house of parliament, or Bundestag, for Greece's third bailout since 2010.

Further complicating matters are IMF demands of debt relief for Greece, whose debt is equivalent to 170 percent of gross domestic product -- a notion viewed with hostility by most Germans.

Germany argues that an outright debt "haircut" would breach EU treaties, but repeated last week that it remains open to future talks on debt restructuring.

Debt relief ranges from reducing the outstanding principal amount of a loan to lowering interest rates or extending the repayment period.

- IMF 'absolutely necessary' -

In an interview on German public television Sunday, Merkel expressed confidence that the IMF would participate in the bailout.

IMF involvement is "absolutely necessary," reiterated Finance Ministry spokesman Marco Semmelmann on Monday -- a position shared by a number of members of Merkel's conservative Christian Union parties.

One CDU legislator, Michael Fuchs, told Bloomberg TV that he had not yet decided whether he would vote for or against the Greek accord on Wednesday. Fuchs also speculated without a clear sign from the IMF that it would be involved in the bailout, the number of "No" votes could increase.

The tally of such dissenting votes would still not be enough to pose a major risk to Wednesday's passage of the deal, but they could reflect growing resistance within both the party and the public that Merkel would be unable to ignore.

"The IMF has a reputation as being tough and independent, much more so than the European Commission. If the IMF endorses a programme, it helps Merkel to sell that programme to her own party and the German public at large. That is why Merkel would like to keep the IMF on board," said Berenberg Bank economist Holger Schmieding.

Natixis economist Sylvain Broyer said Berlin regards the IMF as an insurance policy, since it would offer an "implicit guarantee that the bailout funds will be repaid."

It was indeed Germany, back in the first bailout in 2010, which called for the IMF to participate and provide its technical expertise in aid programmes.

For Merkel's coalition partners, the Social Democrats, the IMF's involvement appears to be less crucial.

The deputy head of the SPD's parliamentary faction, Carsten Schneider, insisted the IMF's participation was "not a deal breaker" in the vote.

What was important, he noted, was the IMF remaining as an advisor to help Greece return to economic growth.

- Tough sell -

Nevertheless, Merkel is finding herself backed into a corner by the IMF's debt relief demands, which would be tough to sell to her party.

On Friday Lagarde stated Greece's debt "has become unsustainable and that Greece cannot restore debt sustainability solely through actions on its own."

"We look forward to working closely with Greece and its European partners in the coming months to put in place all the elements needed for me to recommend to the fund's executive board to consider further financial support for Greece," she said.

MPs from the Bundestag are being called back from summer recess to vote on the bailout, after initially having to return from the break July 17 for a vote approving resumption of bailout negotiations.

Analysts say approval of the new deal is almost certain, with Merkel's governing coalition of conservatives and Social Democrats controlling 504 of the assembly's 631 seats.

What remains to be seen, however, is the scope of a possible revolt among Merkel's fellow conservatives.

The July 17 vote, for example, was opposed by 60 of the 311 legislators in Merkel's bloc, and was seen as a blow to the popular chancellor on her 61st birthday.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today merkel battles worries about imf involvement in greek bailout Arab Today, arab today merkel battles worries about imf involvement in greek bailout

 



Arab Today, arab today
Arab Today, arab today Nohan Seyam designs beautiful accessories

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today 11 family members dead in rebel push

GMT 07:57 2017 Tuesday ,21 February

11 family members dead in rebel push
Arab Today, arab today To probe sexual harassment claims

GMT 10:08 2017 Tuesday ,21 February

To probe sexual harassment claims

GMT 02:21 2017 Wednesday ,22 February

Putin urges Russian nuclear weapons boost

GMT 21:14 2017 Tuesday ,21 February

Tatas will lead, not follow

GMT 20:39 2017 Tuesday ,21 February

China allocates $117 billion to expand railway network

GMT 11:16 2017 Tuesday ,21 February

US military defence technology firm Harris lands

GMT 11:11 2017 Tuesday ,21 February

UAE and Russia to develop fighter jet
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today 57 monkeys carrying 'invasive' genes

GMT 16:00 2017 Tuesday ,21 February

57 monkeys carrying 'invasive' genes
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Ahmed Fahmy stresses he did not ignore singing

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 14:51 2017 Monday ,20 February

Ways to acquire presentation skills

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 16:08 2017 Wednesday ,15 February

Shawsh reveals her collection "Jewelry of dreams"
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday