ECONOMY

Tsakalotos warns of bailout failure risks

tsakalotos-warns-of-bailout-failure-risks

Finance Minister Euclid Tsakalotos warned on Wednesday that Greece’s massive bailout program could fail if the EU and IMF persist in delaying the completion of a crucial review.

“We haven’t got endless time,” Tsakalotos told lawmakers at a European Parliament committee hearing in Brussels, sharply criticizing that teams from the EU and the IMF had not returned to Athens in a month.

Greece’s international creditors – the European Union, the European Central Bank and the International Monetary Fund – completed a first phase of the review on February 5, but there has been little progress since.

“That time is in danger of making a self-fulfilling prophecy that the Greek program fails, for no reason that I can understand either as an academic economist or as a minister of finance,” Tsakalotos, an Oxford-educated former professor, told MEPs.

He added that the immediate benefits of a Greek participation in the ECB’s government bond-buying program, called quantitative easing (QE), are not clear, but it would be a good signal for investors.

[AFP, Reuters]