As if it was not enough 1 hour ago a new warning has been issued by the Eurogroup chairman Jean-Claude Juncker. He warned Greeks that help from the EU and International Monetary Fund would have unpleasant consequences.
“The sovereignty of Greece will be massively limited,” he told Germany’s Focus magazine in the interview released on Sunday, adding that teams of experts from around the euro zone would be heading to Athens.
“One cannot be allowed to insult the Greeks. But one has to help them. They have said they are ready to accept expertise from the euro zone,” Juncker said.
Juncker also said Greece must privatize on a scale similar to the sell off of East German firms in the 1990s.
“For the forthcoming wave of privatizations they will need, for example, a solution based on a model of Germany’s ‘Treuhand agency’,” Juncker said, referring to the privatization agency that sold off 14,000 East German firms between 1990 and 1994.
Athens must sell off 5 billion euros in state assets this year alone or risk missing targets set under its EU/IMF program, which could cut off its funding needed to keep the government running and avoid a debt default.
“The current package of measures, which Athens has agreed to, will bring a solution to the Greek question,” said Juncker. However, he added that the Greek tax collection system was “not fully functional.”
Financial markets still see an 81 percent chance that Greece will eventually default, and German Finance Minister Wolfgang Schaeuble told Der Spiegel in an interview that Berlin was making preparations for such an event — even though it does not expect it to happen.