Germany Says Greece Will Miss Debt Targets

“Greece is missing its debt-cutting targets, German Finance MinisterWolfgang Schaeuble told lawmakers today, intensifying pressure on Greek politicians to deliver on austerity promises.

Schaeuble said in Berlin that Greece’s plans would leave its debt as high as 136 percent of gross domestic product by 2020, according to two people who took part in the meeting and who spoke on condition of anonymity because it was private. That compares with the 120 percent foreseen in a 130 billion- euro ($172 billion) bailout being negotiated.

Signs that Greece is falling short underscored euro-area officials’ frustration with the country’s bickering leaders and the prospect that they may again backtrack on fiscal pledges not first passed into law. Greek lawmakers begin voting on austerity measures this weekend after European finance ministers last night held back the rescue package demanding further commitments from Athens.

“The Greek offer is not sufficient and they have to go away to come up with a revised plan,” Bertrand Benoit, a spokesman for the German Finance Ministry in Berlin, said by telephone today.

The emergency talks of finance chiefs broke up late last night with Luxembourg Prime Minister Jean-Claude Juncker saying Greece must turn its latest budget-cutting plan into law, flesh out 325 million euros in spending reductions and have its major party leaders sign up to the program so they don’t retreat after upcoming elections.

Juncker’s Condition

“In short: no disbursement without implementation,” Juncker said. He set another extraordinary meeting for Feb. 15. “We can’t live with this system while promises are repeated and repeated and repeated and implementation measures are sometimes too weak,” he said….”

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