German Demands for Oversight on Greek Budget Still Causing Friction

Earlier this week German Chancellor Angela Merkel called for stricter outside control of Greece’s budget as part of a deal authorizing €130 billion in a second bailout for the troubled country. Greek leaders and citizens were outraged at the suggestion.

But the idea won’t go away, primarily because without outside oversight, or something that closely resembles it, Germany is not likely to agree to the bailout. Merkel has essentially promised the parliament that Greece won’t just be handed a pile of money and told to have fun.

Greece, meanwhile, has been less than totally focused on reducing spending and lowering its debt. Many attribute that to the effects of the austerity measures forced on the country in order to get the first bailout package. More job and spending cuts are not only unpopular in Greece, but are likely to undermine the very economic recovery the EU claims to be working toward.

There’s a compromise available here, but getting to it could take too long to be of much help to Greece, which needs the new funds to make a March payment on its debt.