Preserved for posterity: The lies of the IMF, Euro Commission, and ECB
Posted by Charles II on June 30, 2015
Alberto Nardelli, The Guardian:
Greece would face an unsustainable level of debt by 2030 even if it signs up to the full package of tax and spending reforms demanded of it, according to unpublished documents compiled by its three main creditors.
The documents, drawn up by the so-called troika of lenders, support Greece’s argument that it needs substantial debt relief for a lasting economic recovery.
The second document in the pack of six, titled Reforms for the Completion of the Current Programme and Beyond, show there was less to this offer than suggested by commission president Jean-Claude Juncker and Germany’s vice-chancellor Sigmar Gabriel. The cash on offer is not an ad hoc investment but is actually an EU grant that is regularly available to all member states. And, as Süddeutsche Zeitung points out, accessing the cash requires a 15% co-financing in Greece’s case, which it cannot afford.
A third document outlines the “financing needs and draft disbursement schedule linked to the completion of the fifth review”, spelling out how Greece would have received €15bn to meet its obligations until the end of November. The cash would have been handed over in five tranches starting in June (as soon as the Greek parliament approved the proposals) to cover Greece’s financing needs. However, 93% of the funds would have gone straight to cover the cost of maturing debt for the duration of the extension.
So, the Troika handed Greece a time bomb and, in exchange, demanded that they slash pensions, raise health co-pays, and make their taxes more regressive. Unsurprisingly, Greece is handing the device back to Europe.
Added: Deutsche Welle has picked up this meme, though without the documents from Suddeutsche Zeitung that The Guardian reported.
And The Independent, again without mentioning the SZ.
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