Monday, April 27, 2015

Whose Idea Was the Grab-the-Cash Move?

Was the grab-the-cash decision made by the Greek government or imposed by the Troika?

Well, I remember very well an interview on Austrian TV about 1-1/2 months ago with Thomas Wieser, an Austrian who heads up the Euro Working Group in Brussels. When asked what he thought Greece should do, his reply was something like: "I think the Greek government should raise all liquidity that they can find in the Greek public sector, be that pension funds, state-owned companies or whatever. The trick is for Greece to make it through to August. Thereafter, Greece's payment obligations are very minimal".

I must admit that I was, then, very surprised by that statement. And afterwards I was surprised that it literally went by uncommented.

So whose decision was it? I don't know but the decision must certainly have pleased the head of the Euro Working Group.


  1. I don't think the liquidity they can scramble together now is enough to get them through July and August. Maybe June, but not July and August.

  2. I do not think that the troika has any power or credibility towards the current Greek government. Therefore I guess that the government autonomously tried this route in order to avoid defaulting right now.

    Resistance against it within Greece is pretty strong and I can hardly imagine that this would allow to muddle through until August.

    If foreign creditors get paid and domestic creditors must wait and get squeezed like lemons popularity of Syriza will rapidly fade.


    PS: Reorganization of the Greek delegation:

  3. This post sounds as a fair criticism towards the one who said what is quoted.
    Therefore I can imagine also, that the person: Thomas Wieser, might have liked the grab-the-cash decision.
    He has overestimated his own capacities when willing to become head of the Euro Working Group, and deserves a reprimand. As you did.