Germany pressed on Monday for strict conditions to be attached to a new bailout accord for Greece, arguing for aid payments to be tied to Athens' reform progress and holding out the possibility of a delayed final deal. The hard line from Berlin reflected popular misgivings in Germany about funnelling yet more aid to Athens and policymakers' loss of trust in the Greek government of left-wing Prime Minister Alexis Tsipras.
An accord for up to 86 billion euros ($94 billion) in fresh loans to the debt-stricken nation must be in place by Aug. 20, when a debt repayment to the European Central Bank is due. But Germany stressed its wish for "quality before speed" in the negotiations and held out - as it has before - the possibility of a temporary bridge financing arrangement if a sufficiently thorough bailout agreement is not reached in time. "It is sensible - that is our belief - to fix the size of the first payment tranche to the extent of the reforms implemented," Finance Ministry spokesman Juerg Weissgerber told a news conference. "That means strict conditionality for financial help," he said, adding that Germany wants a deal that includes an ambitious budget plan, a credible privatisation strategy, and sustainable pension reform. The call from Berlin for a measured, strict approach came as Greece and international creditors sought to put final touches on a multi-billion bailout accord to keep the country financially afloat. Stressing that Germany is not involved in the negotiations, Weissgerber said Berlin would need time after any accord to review the results of the talks, which would subsequently be put to a parliamentary vote.
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Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University
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