Greek "troika" inspectors warn bailout could fail

Πηγή: Monsters and Critics
By DPA
Oct 8 2011


Berlin - Representatives of the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) warned Saturday that their bailout measures for Greece could fail unless Athens introduces stricter structural reforms.

'Greece stands at a crossroads. It is clear that the (rescue) programme will not succeed if the authorities do not take the path that entails far stricter structural reforms than the ones we have seen so far,' Poul Thomsen, the IMF representative of the so-called 'troika' delegation told German newspaper Welt am Sonntag as they wrapped up their latest inspection in the Greek capital.

'It is two steps forward and one step back,' Thomsen added.

'The Greek government understands that many of the most difficult changes still lie ahead. At the same time, there is an increase in political and social fatigue,' said the native Dane.

Thomsen's counterpart from the European Commission, Matthias Mors of Germany, criticized the slow pace of reform of Greek premier George Papandreou's government.

'The Greeks think it's enough to make laws. But their implementation takes time. And often the necessary structures are missing,' Mors told Welt am Sonntag.

The comments were due to be published by the paper on Sunday, hours before German Chancellor Angela Merkel was to meet French President Nicolas Sarkozy to discuss the precarious situation of eurozone banks and the crisis in Greece.

Ahead of that meeting in Berlin, World Bank President Robert Zoellick fired a warning shot at Europe's dithering leaders, singling out Germany for criticism.

'Much in politics happens through the art of bumbling, but the economy and markets need orientation and clarity,' Zoellick told German economic weekly Wirtschaftswoche.

At a time when France was hampered by upcoming elections, Italy was in turbulence and Britain was outside the eurozone, Zoellick asked, 'Where should the solution come from?'

German tax payers 'are missing a political leadership that can tell them in which direction their Europe should even develop,' he told the paper.

'The key question is whether people and governments in Europe want to establish a political and financial union to complement the currency union,' Zoellick added.