"Super tranche" with control mechanisms promoted by the partners

European partners seem to be headed toward the solution of merging the tranches claimed by Greece in a super-tranche of more than 44 billion euros, a solution that is promoted by Germany and supported by France, which is pressing for an immediate answer to the Greek crisis.

 

German Finance minister Wolfgang Schaeuble clarified that the EU "considers the payment of the three tranches to Greece", implying that of September, not yet released, the one of 31.3 billion euros in the second quarter of the year that was to be disbursed before November 16, and the tranche of December.

 

"Greece must receive the remaining three tranches when all issues are resolved," he said, insisting on the necessity of "surveillance" in the form of an "essential control mechanism." He seemed to attach the disbursement of any amount to resolving all outstanding issues in the Greek program and the commitments of Greece.

 

Thus, the German minister confirmed reports by Bild and Reuters broadcast since Tuesday morning that the German government has come to the decision of the combination of tranches for Greece to stop the relevant scenarios on the tranches and the European intent to finance Greece.

 

Meanwhile, the French president appeared far less diplomatic in his speech. Francois Hollande talked about the immediate need to fund Greece by saying that "Greece made all the necessary efforts and it can do more," adding that what our partners are looking for now is a "loophole" to pass even the approval of the tranche and time extension of the Greek program through their national parliaments, in order for the question of the extension not to reach the parliaments of the EU countries.

 

But Francois Hollande admitted that Greece’s partners want to help as well. "Greece is waiting for the support promised by the Eurozone and the Eurozone must support Greece to overcome any doubts about the creditworthiness of the Eurozone; however, they cannot or do not want to throw more money into this effort."

 

"And this question remains not only for Greece but also the IMF and the Europeans: How can we give an extension to Greece without any cost for the member states and without the IMF putting in extra money? We will work in this direction in the coming days with the Ministers of Economy and Finance," Hollande said, adding that what must be done is "find technical ways of refinancing in order to provide Greece with the 31 billion euros it has been waiting for, without risking the principles that should remain so in Germany, France and the rest of the countries."

 

He concluded by sending a message to Germany and its satellite countries that "the solution to the debt problems faced by many countries in the Eurozone must be found through solidarity and not continuous austerity."