Jew World Order

A senior Greek official told the Financial Times the leak was evidence the IMF was “blackmailing” Germany on the debt relief issue. “We will not allow anyone to play with fire and blackmail Greece or Germany or Europe,” the official said.

As part of last July’s bailout agreement, European leaders agreed to discuss reductions in the debts Greece owes individual European nations, which the IMF and the majority of economists believe Greece will never be able to repay in full — and risk preventing the Greek economy from recovering over the long term.

In addition, Velculescu and Thomsen were not in total agreement that Greece had completely failed to enact the spending cuts and tax increases asked of it by creditors.

“They are not getting close” to meeting the IMF’s full demands, Velculescu said. “What is interesting though is that… they did give a little bit on both the income tax reform … the tax credit and the supplementary pensions. They are doing something but it is very small.”

“Well, if they come around to give us the 2.5 percent and not on Mickey Mouse stuff, we should be fully behind them,” Thomsen replied, referring to a compromise budget surplus target of 2.5 percent of GDP.

The IMF released a statement in response to the leaked transcript that neither confirmed, nor denied the authenticity of the transcript, claiming it does “not comment on leaks or supposed reports of internal discussions.”

“We have stated clearly what we think is needed for a durable solution to the economic challenges facing Greece—one that puts Greece on a path of sustainable growth supported by a credible set of reforms matched by debt relief from its European partners,” an IMF spokesperson said.

Even if the transcript of the conversation is consistent with the publicly stated views of the IMF it is likely to stoke the kind of suspicion in Greece and Germany that has long created political hurdles to progress in the Greek debt crisis.

Greece, and many international observers sympathetic to its predicament, will see the IMF officials’ remarks as more evidence that the Fund and the European Union have little regard for Greece’s sovereignty.

The massive spending cuts and tax increases Greece has already implemented in recent years in order to repay its debts have contributed to a massive uptick in poverty and the highest unemployment rate in the European Union.

Meanwhile, the IMF’s potential threat of withdrawal could exacerbate German suspicion of the bailout process. The German public has long been wary of additional lending to Greece, which it believes has failed to reform its profligate government finances or adequately liberalize its economy.

It is also unclear what implications another potential Greek financial standoff will have on the European refugee crisis, of which Greece has been on the front line.Greece is the first entry point for the thousands of refugees flowing into Europe from Turkey and other countries. Tens of thousands of refugees with hopes of reaching more prosperous European nations have been stranded in Greece as neighboring European nations close their borders.

The European Union reached a deal with the Turkish government on March 18 to return asylum seekers trying to reach the continent by sea in exchange for additional aid to Turkey. They also agreed to an increase in the number of Turkey-based refugees Europe would resettle through a formal absorption process. The plan goes into effect on Monday.

A senior Greek official told the Financial Times the leak was evidence the IMF was “blackmailing” Germany on the debt relief issue. “We will not allow anyone to play with fire and blackmail Greece or Germany or Europe,” the official said.

As part of last July’s bailout agreement, European leaders agreed to discuss reductions in the debts Greece owes individual European nations, which the IMF and the majority of economists believe Greece will never be able to repay in full — and risk preventing the Greek economy from recovering over the long term.

In addition, Velculescu and Thomsen were not in total agreement that Greece had completely failed to enact the spending cuts and tax increases asked of it by creditors.

“They are not getting close” to meeting the IMF’s full demands, Velculescu said. “What is interesting though is that… they did give a little bit on both the income tax reform … the tax credit and the supplementary pensions. They are doing something but it is very small.”

“Well, if they come around to give us the 2.5 percent and not on Mickey Mouse stuff, we should be fully behind them,” Thomsen replied, referring to a compromise budget surplus target of 2.5 percent of GDP.

The IMF released a statement in response to the leaked transcript that neither confirmed, nor denied the authenticity of the transcript, claiming it does “not comment on leaks or supposed reports of internal discussions.”

“We have stated clearly what we think is needed for a durable solution to the economic challenges facing Greece—one that puts Greece on a path of sustainable growth supported by a credible set of reforms matched by debt relief from its European partners,” an IMF spokesperson said.

Even if the transcript of the conversation is consistent with the publicly stated views of the IMF it is likely to stoke the kind of suspicion in Greece and Germany that has long created political hurdles to progress in the Greek debt crisis.

Greece, and many international observers sympathetic to its predicament, will see the IMF officials’ remarks as more evidence that the Fund and the European Union have little regard for Greece’s sovereignty.

The massive spending cuts and tax increases Greece has already implemented in recent years in order to repay its debts have contributed to a massive uptick in poverty and the highest unemployment rate in the European Union.

Meanwhile, the IMF’s potential threat of withdrawal could exacerbate German suspicion of the bailout process. The German public has long been wary of additional lending to Greece, which it believes has failed to reform its profligate government finances or adequately liberalize its economy.

It is also unclear what implications another potential Greek financial standoff will have on the European refugee crisis, of which Greece has been on the front line.Greece is the first entry point for the thousands of refugees flowing into Europe from Turkey and other countries. Tens of thousands of refugees with hopes of reaching more prosperous European nations have been stranded in Greece as neighboring European nations close their borders.

The European Union reached a deal with the Turkish government on March 18 to return asylum seekers trying to reach the continent by sea in exchange for additional aid to Turkey. They also agreed to an increase in the number of Turkey-based refugees Europe would resettle through a formal absorption process. The plan goes into effect on Monday.