European finance ministers have serious doubts— not about the proposal submitted by Greek prime minister Alexis Tsipras, but about Greece’s willingness, ability and capability of implementing what they are promising.
A serious breakdown in trust has emerged between European leaders and the Greeks.
Leading the pack of nay-sayers was none other than German finance minister himself, Wolfgang Schauble who not only slammed the Greek government’s credibility, but also seemed to slash any hopes of debt relief for Greece.
“We know that debt relief is not possible according to European treaties,” Schauble told reporters, adding that “We are not ready to accept calculations that are not believable.”
Spain’s finance minister Luis de Guindos added to the negative mood toward Greece, stating that “Credibility is very low, so we will we see. And I hope Grexit will not take place.”
What can Greece do about the lack of trust?
Pierre Gramegna, finance minister of Luxembourg wants to see actions: “It is important to find out about the concrete steps [which will be taken]and how they are prepared to translate that into legislative initiatives which can be voted for in parliament. Draft bills, the prospect of a vote will build confidence.”
Eurogroup president Jeroen Dijsselbloem added his two cents.
“We are not there yet, there is still some criticisms of the proposals, on the fiscal front and the reforms. But there is the issue of trust. Can the Greek government be trusted to do what they are proposing.”