German finance minister Schaeuble is quoted today by Reuters as saying;
“The promises from Greece aren’t enough for us anymore,” Schaeuble said. “With a new austerity programme they are going to first have to implement parts of the old programme and save.”
I think the is the most blatant Germany can be without actually saying “Greece needs to default”
It does not make any difference to Germany if they give the money now or later but I am positive Germany, Merkel and Schaeuble would far prefer to give 100 billion Euros the Greece after the country has defaulted.
Germany would far prefer to give the money to reimburse people who had lost their savings rather than the money going to the Greek government which has shown itself to be completely incompetent.
I do not believe the conditions that Germany are asking for are serious are intended to be taken seriously.
Germany is asking for outrageous commitments from Greece and hoping and praying that the Greek government will say “enough is enough, we will default”.
Merkel, Schaeuble and Germany must be frustrated that despite their outrageous conditions, the Greek government is still prepared to accommodate them.
This interview from Schaeuble, I believe shows the absolute desperation of Germany for Greece to default.
Merkel has already implied she is more than happy for the EU to use the ESFS to pick up the pieces of a Greek default. I believe Merkel is more than willing for the Greek government to be destroyed by a default, for the Greek people to be set free and Germany will recapitalize the economy.
The major issue Germany has is being held to ransom by the banks.
Merkel and Germany know that the bailout money is going straight to the banks, and they do not like it.
I believe Germany and Merkel want Greece to default, they want to use the ESFS to recapitalise the Greek economy after the banks fail and allow Greeks to carry on in a country which has been relieved of the massive burden of government incompetence.
The media and politicians in Greece are vilifying Merkel, that should tell Greek she is doing something right!