As the anti-austerity Coalition of the Radical Left (SYRIZA) party was romping in the Jan. 25 Greek elections it got a warning from a German banker it has to stick to reforms to keep loans coming.
Deutsche Bundesbank President Jens Weidmann said despite SYRIZA vows to renegotiate the terms of two bailouts of 240 billion euros ($306 billion) in two bailouts that Greece still needs aid and wouldn’t get it unless it follows orders on austerity that the Leftists have rejected.
“I believe it’s also in the interest of the Greek government to do what is necessary to tackle the structural problems there,” he said in an interview with German public broadcaster ARD.
“I hope the new government won’t call into question what is expected and what has already been achieved,” he said. Germany is the biggest contributor to the rescue packages from the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) but demanded big pay cuts, tax hikes, slashed pensions and worker firings in return.
That led to the demise of the coalition government of Prime Minister and New Democracy Conservative leader Antonis Samaras and his partner the PASOK Socialists who implemented the measures and paid the price for it.