German election result alarms Athens

Written by on September 27, 2017 in Europe - Comments Off on German election result alarms Athens

A few days after a federal election in Germany, Athens is contemplating repercussions on the country.

So far, under the Merkel chancellorship, Berlin’s policy on Greece involved putting the country through an extensive structural reform program, whose targets would be agreed with the troika of lenders.

Depending on the makeup of the next German government, the German stance vis-a-vis Greece is now expected to change. Analysts suggest a stricter approach is on the cards in the form of a tougher line on immigration, an objection to further support for Greece, as well as obstacles to any German funds going toward the reinforcement of the European Union.

A possible coalition between Angela Merkel’s CDU/CSU, the FDP and the Green party could result in the junior partner having first pick of ministries, which could spell trouble for Greece, especially if FDP chooses to assume the Ministry of Finance.

The leader of FDP, Christian Lindner, has been outspoken on Greece, arguing that Wolfgang Schauble’s approach has been too lenient.

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