The new bailout program for Greece continues to divide the country’s international creditors as the International Monetary Fund (IMF) refuses to go along with the reform guidelines proposed by Athens and EU officials.
The position of the IMF is that Greece is in need of deeper reform measures but that the country also needs debt relief as its debt-to-GDP ratio is unsustainable.
In the light of this “deadlock,” European Commission, European Central Bank and European Stability Mechanism officials held a meeting yesterday in Frankfurt in hopes of finding a common ground about the “fiscal gap” and the measures that Greece needs to implement as part of the new bailout agreement.
However, the meeting proved fruitless, according to various media reports, and all hope rests now with today’s meeting among Eurozones’ finance ministers in Brussels.
In the meantime, the latest data about GDP for 2015 have changed for the worst, which means there will be pressure for additional measures, especially on the part of the IMF.
EU officials appear content with Athens’ reform proposals, although there are some disagreements between the different actors, but the Fund remains keen on pushing for more draconian measures as it sees a far bigger Greek “fiscal gap” than either Brussels, Berlin, or Frankfurt.