After all, the economy collapsed by a quarter, every second young person is out of work and mistakes have been made.

After all, the economy collapsed by a quarter, every second young person is out of work and mistakes have been made.

After all, the economy collapsed by a quarter, every second young person is out of work and mistakes have been made.

It was the same before Greece joined the euro, and in a few years Hellas would be back where it is today. A currency crash will not cause the Greeks to stop living beyond their means. At best, it would spark a flash in the pan. Source: “A tourist looks out over Athens from the hill of the Acropolis. (Photo: REUTERS) It’s about 86 billion euros for Greece: In Athens, the government and creditors are to negotiate the terms of a third aid package First, however, the institutions visit the country’s financial controllers. Representatives of the international lenders visited the Court of Auditors in Athens to start discussions on a third aid package for Greece.

That reported the Greek television. According to the latest information from the Greek government, the negotiators of all delegations will take part in the talks on Thursday. Athens is hoping for a quick result, the European Commission is aiming for the second half of August. In addition to the EU Commission, representatives of the European Central Bank (ECB), the International Monetary Fund (IMF) and the Euro rescue fund ESM also take part in the negotiations. It is about an aid program worth up to 86 billion euros for the next three years.

Athens does not have much time: Greece is heavily indebted and has to repay 3.2 billion euros to the European Central Bank (ECB) by August 20. With the approval of two reform and austerity packages, the Greek parliament had the provisional conditions of the creditors for one third aid program fulfilled. As reported by the commission, the donors of Athens expect further reforms before the disbursement of new aid loans.

These would be “helpful and useful” and would restore confidence, it said from Brussels. The Greek side had assured its donors that they would have access to the ministries and all relevant data. Mahmood Pradhan of the European section of the IMF said it was in the interests of all parties that the negotiations proceed at a reasonably brisk pace. In a report, the Monetary Fund warns of contagion risks for the euro zone. The situation in Greece remains a source of uncertainty – although the monetary union is now better prepared for risks than in the past. The left wing of the ruling Syriza party had voted in the Greek parliament against the controversial reforms and cuts, which were therefore only passed with the help of the opposition could become.

Because of the internal party quarrels, Prime Minister Alexis Tsipras suggested that the dispute over the direction of the party be resolved at a party conference. According to government circles, the prime minister recommended this to the highest body of his party. Source:, mli / dpa “” (Photo: dpa) Finance Minister Schäuble has again proposed Greece’s exit from the euro. What was considered blackmail a few days ago is now a concept that everyone involved should think about. How a politician’s statement is to be understood often depends not only on its content, but also on its timing.

When Wolfgang Schäuble launched the proposal for a “Temporary Grexit” through the “Frankfurter Allgemeine Sonntagszeitung” last weekend, negotiations between the euro finance ministers were in progress. A day later, the heads of state and government of the euro countries met and negotiated the way to a third credit program for Greece. Schäuble’s five-year euro break for Greece had to be understood as blackmail, at least as a sharp threat. In the meantime, not only the Greek Prime Minister Alexis Tsipras has approved the conditions of the euro countries around Germany, but also the Greek parliament – grudgingly, but with a clear majority. Schäuble promptly repeated his suggestion the morning after, openly, in an interview, not through a paper leaked to the media. A possibly temporary Grexit is perhaps the better way for Greece, he says in it. The timing makes the difference: Now it is no longer the “gun to the temple” that is forcing Tsipras to give in, now it is a legitimate argument.

Specifically, Schäuble says that Greece cannot solve its problems “without a real haircut”. Such a “real haircut” is, however, from a purely legal point of view “incompatible with membership in the monetary union”. If you read the interview, you can tell that Schäuble is very cautious at this point. He pauses, starts sentences again.

What is very clear, however, is what Schäuble is not doing: He is not calling for Greece to be expelled from the euro. Instead, he encourages people to think about whether it would be better for the Greeks to leave the euro. One thing is clear: Nobody knows how a Grexit would work and what happens afterwards. There are good reasons to be concerned about such a scenario. An exit from the euro could be devastating for Greece. The mere mention of the word Grexit by the German finance minister is damaging the Greek economy.

Nobody invests in a country whose future is so uncertain; on the other hand, the sword of Damocles of a Grexit will hang over Greece as long as the Greek debts are unsustainable. And a future in which Greece is forced to pile up more and more debt is likely to be devastating. Schäuble suggests achieving debt sustainability outside the euro. This is not a threat, it is a proposal that should be carefully considered in Brussels, Athens and Berlin. Source: “” “Kostis Chatzidakis was Minister of Economics in Prime Minister Antonis Samaras’ cabinet from 2012 to 2014. The conservative politician belongs to of the Nea Demokratie.

He was seriously injured by violent demonstrators in 2010. (Photo: picture alliance / dpa) Euro or drachma? That is basically the question of the announced referendum, says Kostis Chatzidakis. It is therefore about nothing less than the future of Greece, said the former Minister of Economic Affairs in an interview with Long queues in front of the ATMs, hamster purchases in the supermarkets.

Many petrol stations run out of petrol. This seems unreal and bizarre to an outsider. Kostis Chatzidakis: That is also bizarre for us Greeks. We couldn’t imagine that until last Saturday.

Then, after the government cabinet meeting, the referendum was announced. Many ministers believed that everything had only a political dimension. That is of course wrong.

A referendum that affects the economic future of an entire country is existential. Basically, the question is whether Greece will stay in the euro area and in the European Union, with Greeks saying that deep rifts have emerged in recent months. Even through families there is a rift between those who want a break with the creditors and those who don’t. In companies, colleagues keep silent and now sit at separate tables in the canteen. That is precisely why the Prime Minister’s decision to hold this referendum was not a wise decision.

This has created new tensions in Greek society. The country is now facing a historic moment: we Greeks now have to decide about the future of our families, our country. And you will vote “Yes”? Yes. But not because I support the lenders’ suggestion. But because I have no illusions.

The real question is: euro or drachma? In other words: will Greece remain part of Europe or will it become an isolated Balkan country? Of course we face major challenges.

We have a bumpy road ahead of us within the euro zone. But that’s better than a cliff; you were ministers in previous governments. Wasn’t it a mistake to accept the demands of the creditors?

After all, the economy collapsed by a quarter, every second young person is out of work and mistakes have been made. On both sides. Greece is now paying for the mistakes made in the past – for the excessive debt, for the deficit, for the lack of competitiveness. And the lenders took an approach to punish the Greeks. This has led to a distance between Greeks and European governments.

In addition, taxes were increased too much at the beginning. There were delays in structural reforms and privatizations. But we can’t go back to 2010 and start all over again. Now we have to choose between two options: continue negotiating and follow the path of Portugal, Ireland and Cyprus – or commit national suicide. Many Greeks say: The economic and social record of the last five years shows that one has to break with the creditors. The memoranda and the behavior of the creditors were a mistake.

But there is no magic trick to solve the present difficulties. The government is now paying the price for its demagogic election promises. She has promised too much and therefore has no scope to change course. And the Greeks must suffer as a result: they were attacked by left-wing demonstrators in 2010 and seriously injured in the process.

Aren’t the rifts in Greek society so deep that they can no longer be closed? The Greeks abruptly felt the consequences of tough budgetary adjustments and severe austerity measures. This is why some react violently at times. Our people suffer.

And there are demagogues who want to make political capital out of it. That shows that Europe as a whole has to face the problems – in a spirit of solidarity. And we Greeks should act prudently and in unity.

After all, it is about the future of our country. The rest of Europe must not forget that this is a European country that deserves a better future. Jan GängerQuelle: spoke to Kostis Chatzidakis “The Greeks don’t actually want to return to the drachma. The referendum could have ushered in Grexit anyway (Photo: dpa) The head of the Ifo Institute, Sinn, calls on the ECB to stop the emergency loans to Greece.

Greece would then have to return to the drachma. The German aid loans have been lost anyway. The head of the Ifo Institute, Hans-Werner Sinn, has appealed to the European Central Bank to stop the emergency loans to Greece. The EFSF bailout fund formally declared on Friday that Greece was insolvent and that there were no new bailouts. The ECB must not circumvent this by providing rescue loans itself, “which it has already done in the amount of 90 billion euros,” said Sinn at n-tv. Greece must now return to the drachma. “If there is no aid, then it is the only option. You convert all balance sheets, all contracts into drachmas.

Then the banks are immediately solvent again. The drachma would devalue and that would also have the advantage that the Greek economy would pick up again after a year or two. “For Germany, this means that the loans to Greece are lost.” The money will never come back, “said Sinn. “The money is lost. If Greece is held in the euro, you will have to throw in new money, then this amount will keep growing. If Greece leaves, there is at least a chance that part of it will be repaid, because the exit means a devaluation of the drachma. With the devaluation you get a trade surplus and the trade surplus is then the net repayment of foreign loans. “On Sunday, the Greeks spoke out in a referendum against the lenders’ last, no longer valid offer.

It is therefore unclear how the negotiations between Greece and the rest of the euro zone will continue. Source:, hvo “” Consolidating state budgets and market-oriented reforms: Greece cannot get on its feet otherwise Prime Minister Tsipras started reforms back. No wonder the country is doing worse and worse. But this course is doomed to fail. And Athens’s course shows something else as well: The Greek debt drama keeps raising new questions this week.

Will the referendum come or will it not be possible at all within the deadline? Is Alexis Tsipras still backing down under growing pressure from Brussels? Or is it making a whole new volte? Since Tsipras’ assumption of power in January, developments in Greece have been counterproductive.

Instead of continuing the reform process that led to an initial slight recovery in 2014, the Syriza government immediately set about rolling back reform measures by previous governments. No wonder that the economic situation has deteriorated massively since then. Volker Wieland sees no alternative to a reform course in Greece. (Photo: picture alliance / dpa) The stability of the monetary union and the economic success of the crisis countries depend on the state budgets being consolidated and market-oriented reforms are implemented. Only in this way can countries grow out of debt.

Monetary policy can support demand, but structural adjustments are necessary for sustainable growth. Ireland and Spain have shown this, and also Portugal. It is still to be feared that the Greek government will only want to use the desired debt relief to tinker with a socialist economic system. But this path is doomed to failure. Leaving the EU and introducing one’s own currency could not prevent this failure. Volker Wieland is Professor of Monetary Economics at the Institute for Monetary and Financial Stability (IMFS). As a scientific center, this belongs to the Goethe University Frankfurt am Main.

He is also a member of the Expert Council for the assessment of macroeconomic development (“economic method”). His main research interests include monetary and economic policy. With the emergency aid, the European Central Bank (ECB) made the ongoing conflict course of the Greek government and the flight of capital of concerned citizens possible in the first place. The Target payment system creates ever greater risks for European taxpayers in the event that Greece leaves the EU. Ela emergency loans are intended for solvent banks with temporary liquidity problems.

Following recent announcements by the Greek government, this is unlikely to apply to Greek banks anymore.

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