German pressure could wreck Greek bailout deal

German minister criticizes 'unclear' proposals from Athens, while S&P says Greece will still be in the euro at year-end

German pressure could wreck Greek bailout deal

World Bulletin / News Desk

 Political pressure from Germany could interfere with a compromise bailout deal for Greece that seems to draw closer as the deadline looms.

German Finance Minister Wolfgang Schauble told the press on Wednesday that he is still not satisfied with the new Greek proposals. "They are not clear," he said.

Vice Chancellor Sigmar Gabriel said in a speech on Tuesday that a haircut for Greek debt would not solve the country's economic problems.

Now that a compromise between Greece and its creditors is close, there is concern in Germany that it will involve a stiff bill for German taxpayers to pay.  

Schauble has been such an outspoken critic of the proposals that Greek Labor Minister Panos Skourletis asked on Tuesday if the minister sought the fall of the Greek government.

On Wednesday, the Eurogroup is to meet to seek further progress, but Schauble has warned that he remains extremely skeptical. German pressure could make an accord much more difficult.

Nonetheless, there were concrete signs of progress on Tuesday. The credit agency Standard & Poor's said in a statement that it expects Greece to still be in the euro by year-end.

And, the European Central Bank raised its ceiling for emergency aid to the country's banks by about $1.3 billion. 

Greeks are still pulling about $500 million per day from their accounts, according to Bank of Greece statistics, in fear of the imposition of capital controls should an accord not be reached in time.

The bailout ends on June 30, although the Greek government has said it would accept an extension.

Güncelleme Tarihi: 24 Haziran 2015, 11:43
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