Merkel position on Greece threatening Europe: Analyst

Press TV has conducted an interview with Brent Budowsky, a columnist for The Hill Newspaper in Washington, about German Chancellor Angela Merkel once again ruling out proposals to write off some of Greece's debt, but assures that Berlin is supporting a flexible repayment plan for the debt-laden country.

The following is a rough transcription of the interview.

Press TV: It is quite clear that Merkel is not ready to be merciful to Greece. She says that a debt write-off will not work in a currency union.  Do you agree with that assessment?

Budowsky: Absolutely not and the International Monetary Fund, not the most progressive organization in the world, does not agree with what chancellor Merkel said either. The French do not agree, the United States does not agree and chancellor Merkel is far out on a limb taking positions that literally threaten Europe itself. It is much bigger than Greece. The Germans need to decide or they are going to play a responsible role or they are going to be a kind of financial dictator over the rest of Europe.

The International Monetary Fund, and this is important, has urged a major, major restructuring and write-down of some of the Greek debt. There are people that the IMF who have actually gone even further and said there needs to be direct assistance Greece to help stimulate their economy at this point and Merkel this way out of line. Now I will say that it is time that the Finance Minister of Germany Mr. Schaeuble considers resigning. I predict he will ultimately have to resign. He is the most reactionary, of a reactionary group of people in German government and I think it is just outrageous and wrong and indefensible.

What the IMF has said is that the current debt structure is unsustainable, it needs to be lightened. The Germans need to be more flexible and I will remind our audience since I had before that after the Second World War Germany which accumulated debt trying to end the world during the World War II, invading its neighbors, destroying Europe, creating concentration camps, they had their debt largely forgiven after the Second World War. Then they had their economy lifted by the United States and others in the Marshall Plan. Then they did not have to spend money on defense which the United States and others spent for Germany because we were afraid they would start World War III if they had a defense budget. It is time for Germany to reciprocate the generosity that we shown to them.

Press TV: It seems that Angela Merkel believes that debt relief in the form of favorable interest rates and time extensions is generous enough?

Budowsky: Well she does argue that and she is wrong. You cannot go to a country with 30 percent unemployment and major poverty and say that what we will do is we will make you pay the full amount at a little bit lower interest or a little bit longer period of time.

Some of that money as the IMF, as the United States, as the French and others have said, some of that debt needs to be written down. So she can argue that all she wants. Her finance minister Mr. Schaeuble who is even more reactionary than she is can argue with all he wants but it is not sustainable, it is not workable, it is not moral, it is not good economics and in the end they are going to have to give in.

Angel Merkel and the Finance Minister Schaeuble cannot stop the European project from going forward and move it backward by taking reactionary positions that are bad economics and not moral. Even the International Monetary Fund – I do not usually quote them in an approving way- they agree with me and what I am saying right now. They disagree with Merkel. And when even the IMF takes a position that is much more enlightened, she needs to look in the mirror and have a dose of conscience and common sense and back off and I put it in the end, she probably will and I predict in the end her Finance Minister Mr. Schaeuble will probably leave office one way or the other and I will say right now he should.

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