Wolfgang says – More loans and more memoranda

Back-to-the-future
In an interview with the German magazine Focus, the German Finance Minister Wolfgang Schauble indicated that Greece would require another bailout loan of about 10 billion euros and stated that the country would have to continue to meet the troika’s demands for reforms or risk leaving the Eurozone.
The statements from Mr Schauble come at a sensitive time for the government that is attempting to shore up support following SYRIZA’s win in the European elections (with a combined loss of support of about 11% for coalition partners PASOK and New Democracy compared with the June 2012 general election result).The administration is attempting to appease voters by preparing a cabinet reshuffle and indicating that measures to reduce the tax burden on struggling households and businesses may be imminent.
However the statements by Mr Schauble appear to restrict even further the little room for maneuver the government has on fiscal measures.Mr Schauble stated that it was likely that Greece would require a further loan of about 10 billion euros. He also once again raised the threat of a Greek exit from the eurozone if the country failed to implement the reforms demanded by the troika.
In response to the comments by Mr Schauble the opposition party SYRIZA issued a statement which read:
“While the government is attempting to find illegitimate means to avoid the polls and the people’s judgment, the statements of European officials such as Mr Schauble, as well as the IMF report, bring home the harsh reality of the memorandum.”
“The government can hide neither its attachment to a catastrophic policy which is laying waste to the Greek people and entails the implementation of new anti-social measures, nor the fact that the public debt which is the pretext of the Memoranda is in no way being made sustainable.”
“Superficial moves such as the rumoured reshuffle cannot correct the image of governmental dissolution.”
Full report in The Press Project, see here

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