Germany Has Advice for Greece on Reforms

German politicians kept up the pressure on Greece over the weekend to implement reforms, with Economy Minister Sigmar Gabriel warning Athens in an interview that a third aid package would not be on the cards unless the Greeks made some changes.  Greece is fast running out of cash and talks with its lenders have been deadlocked over their demands for Greece to implement reforms, including pension cuts and labor market liberalization.

Finance Minister Wolfgang Schaeuble suggested on Monday that Greece might need a referendum to approve painful economic reforms on which its creditors are insisting, and Gabriel said such a vote might speed up decisions.  Athens has said it had no plans for a referendum at the moment.

Gabriel, head of the Social Democrats (SPD), Chancellor Angela Merkel’s junior coalition partner, stressed that the Greek government needed to take action in any case.  “A third aid package for Athens is only possible if the reforms are implemented. We can’t simply send money there,” he told the paper.