A simmering feud between the leftist-rightist coalition government and the Bank of Greece’s (BoG) leadership resurfaced over the weekend, only hours after a Eurogroup decision over a Greek debt relief package and post-memorandum supervision of the country by its institutional creditors.
The particularly prickly back-and-forth statements and counter-statements by “circles” representing both sides, albeit in an unofficial manner, have set the stage for another showdown between the Tsipras government and BoG Gov. Yannis Stournaras, who was an influential finance minister in the previous Samaras-Venizelos coalition government.
The first negative reaction, albeit unofficial from BoG side revolved around the very high primary budget target of 3.5 percent (of GDP) until 2022, followed by 2.2 percent until far-off 2060. The other criticism, via sources, centered on the strict post-bailout supervision, in comparison with the other Eurozone countries that exited their (one) bailout, and what were described as “timid” measures in terms of debt relief.
In a sharp response, Digital Policy Minister Nikos Pappas, among the closest associates to Greek Prime Minister Alexis Tsipras, said “I’d like to hear from the central bank to comment on the agreement, because I heard Mr. Stournaras (previously) talk about the precautionary credit line.”
In response, BoG circles merely pointed to July 2 as a date for the central bank’s assessment on the recent debt and post-memorandum deal.
According to reports, Stournaras aims to respond with a BoG report, “institutionally, and not with leaks … the economy is not a game of leaks, nor for the uninformed, which have taken to talking of late without basic knowledge of economics … economic policy is not drawn up on Facebook “.
A sharp reaction, this time by “circles” at the prime minister’s Maximos Mansion headquarters, charged that “Mr. Stournaras’ position for July 2 or 32 is unnecessary. He’s been preceded by European institutions, governments and internationally recognized analysts, the international press and reality … He should, at least, do himself a favor and ridicule himself … Nevertheless, regardless of what he says, it has absolutely no significance, just as his proposal for a precautionary credit line is insignificant…made only in order to vindicate himself and the Samaras-Venizelos government that he served.”
