19 August, AtoZForex.com, Lagos – As Prime minister Alexis Tsipras faces stiff opposition in his own Syriza party against the new bailout terms, so does German chancellor Angela Merkel face a rebellion in her own party over further requests for a third Greek bailout. German finance minister, Wolfgang Schaeuble who was previously known for his promotion of Grexit is now vying for a new chance for Greece.
Schaeuble acknowledged that there is no guarantee that Greece’s third bailout would work, but also emphasized that it would be irresponsible not to give the indebted nation the opportunity for a Greek second chance. Considering that the country has so far shown willingness to act according to the terms of the deal.
“Of course, after the experience of the last years and months there is no guarantee that everything will work and it is permissible to have doubts,” Schaeuble told German lawmakers on Wednesday ahead of a vote on the bailout package. Aside this comment he added: “But in view of the fact that the Greek parliament has already passed a large part of the measures it would be irresponsible not to use the opportunity for a new start in Greece.”
The Greek negotiation enters a new phase as Germany, Athens biggest creditor now seems to be rallying support for the Europe’s most indebted nation. The deal requires tax increases as well as tougher spending cuts in return for an EU bailout of about €85bn (£61bn, $95bn) – Greece’s third in five years. Greece’s co-operation so far has earned it a level of confidence.
Angela Merkel is now calling upon the international monetary fund to join the third bailout for Greece, as she hinted at the willingness to consider debt relief, and also to aid the realization of it.
A few weeks back, the fund hinted that Athens’ high debt levels and current record of implementing reforms disqualify it from a third bailout. This created a new round of worries for Alexis Tsipras and his country, raising doubts as to whether the fund will have any involvement in EU’s latest financial rescue, and how strong will the backing be without the IMF’s backing?