BERLIN
The EU’s planned €85 billion ($93 billion) bailout for Greece has drawn harsh criticism from Germany’s liberals and the populist and eurosceptic Alternative for Germany, AfD.
Christian Lindner, leader of the opposition liberal Free Democratic Party (FDP), sharply criticized Chancellor Angela Merkel calling her policies unrealistic and demanding a temporary withdrawal of Greece from the EU monetary union.
“A Grexit could be a new start for the eurozone. For the remaining partners, it could mean strengthening of solidarity and contractual law. For Greece, it could be a chance to carry out adjustment measures in an easier way,” Lindner said in an interview with German daily Die Welt on Wednesday.
Lindner argued that the austerity measures and reforms demanded by the EU and IMF were inappropriate, and would not better the situation in Greece.
“That is clear for everyone. For example, if you want to develop tourism, you cannot do that by increasing excise taxes. That would make Greece unattractive as a travel destination in comparison to its competitor Turkey,” he said.
Bailout against EU rules
The free market advocate Lindner also claimed that legal conditions were not met for the allocation of €85 billion to Greece under the EU’s European Stability Mechanism (ESM) program, which he said can only be facilitated should serious risks arise for the stability of the eurozone.
“After the summit, I am concerned about a change in the character of the monetary union and the ESM - a change towards a transfer union, where the self-sufficiency of some of the member states is continuously supported from outside by the others,” he said.
Lindner said Greece will not be able to pay back the €85 billion, which he described as a “transfer”, rather than a “credit”.
AfD launches anti-bailout campaign
In related news, Germany’s anti-euro party, Alternative for Germany (AfD) launched an online petition campaign on Wednesday to the Greek bailout process.
“I reject the third rescue package and possible further euro rescue measures for other countries,” it said.
The petition on the website www.ja-zur-alternative.de received more than 2,000 signatures in a few hours.
German public opinion is deeply divided on providing further support to Greece.
52 percent of Germans back a third bailout program for Greece, while 44 percent oppose, according to a representative poll published by public television ARD on Monday.
The German parliament is expected to hold an extraordinary session on Greece on Friday, and vote giving a mandate to the government for the third bailout negotiations.
Besides the FDP and the AfD, which are the two strong non-parliamentary opposition parties in Germany, the main opposition The Left Party also criticized the bailout program. The Greens have also condemned the tough conditions and austerity measures in the program.
Germany has been among the largest creditors of Greece, which is struggling to overcome a deep financial crisis.
French lawmakers back Greece bailout agreement
The French National Assembly and Senate haveapproved the Greece bailout agreement with creditors.
MPs backed the agreement by 412 votes for and 69 against. In the upper house, 260 senators cast their votes for and 23 against.
Speaking at the National Assembly, French Prime Minister Manuel Valls dismissed any idea of Greece leaving the eurozone.
"There is no Grexit or temporary Grexit, this idea is absurd and dangerous," he said. "This agreement is not a blank check. It is a responsible agreement, there will be debt relief for Greece."
"Abandoning Greece is to abandon ourselves," Valls added.
Since 2010, the EU and the International Monetary Fund have allocated around €240 billion ($265 billion) in bailout loans to Greece. Germany had a share of around €85 billion.
European leaders and the Greek government agreed on a conditional bailout deal on Monday, after more than 17 hours of negotiations in Brussels, with the hope of preventing the EU member state from going bankrupt, and leaving the eurozone.
The EU agreed to begin formal negotiations on a new bailout program for Greece with the condition that the Greek government pass four key legislations in parliament by July 15, including the streamlining of Value Added Tax, broadening the tax base, key reforms in the pension system and spending cuts.
Greek government assets will also be privatized, creating a €50 billion ($54.1 billion) fund, to be based in Athens and to be used for recapitalizing Greek banks and investing in the country's economy.
