Swoboda calls on Schäuble to follow Lagarde’s lead on less austerity and more growth
Following the IMF’s (International Monetary Fund) correction of economic calculations in its World Economic Outlook published this week, managing director Christine Lagarde has called for an easing of austerity measures and additional time for Greece to meet its fiscal targets. German finance minister Wolfgang Schäuble has rejected Ms Lagarde’s call, continuing to insist on harsh austerity measures for Greece.
Hannes Swoboda, president of the Socialists and Democrats Group in the European Parliament, has voiced his concern over Mr Schäuble’s unchanged position:
„I am surprised at the rigid line Mr Schäuble has taken and his rejection of Ms Lagarde’s proposals.
„One visit by German chancellor Merkel – several years into the crisis – and her promise of €30 million in German investment projects in Greece are not sufficient to guarantee Greece remains in the eurozone.“
He continued by calling for an extension of the timeframe for Greece to meet its targets:
„There is no point in drawing up timetables which cannot be met. Money is wasted through this short-sighted and inefficient approach – money which the eurozone direly needs.
„If the Troika is guided by reason it has to come to the conclusion that what is needed is a combination of pressure for reform and additional time to implement these reforms.“