ESM head Regling disparaging remarks about Tsipras governance

European Stability Mechanism (ESM) Managing Director Klaus Regling said the scenario of a ‘Grexit’ had not completely disappeared in an interview to Slovenian newspaper ‘Delo’. Regling underlined that the composition of the Greek government was not the key matter, as long as the measures and reforms agreed were implemented. “The important thing is to have a functional government and for the reforms to commence as soon as possible”, said the head of the ESM. On the matter of a possible Greek debt relief Regling said that the European Financial Stability Fund (EFSF) and the ESM possessed 45% of the total Greek debt, which he characterized a huge amount. On the outcome of the September 20 elections in Greece, the senior economist stressed that the institutions would be delighted to work with any future Greek government, adding that the ‘abruptly interrupted reforms’ in the first half of 2015, which were later revived are in line with the new ambitious program. Regling praised the reforms implemented from 2010 to 2014, citing the large reduction in the country’s deficit from 15% to 3%, using prickling comments about the Tsipras period saying that ‘while there were clear indications of an economic recovery everything was interrupted during the first half of 2015′. Commenting on the possibility of the IMF participating in the 3rd rescue plan, the German economist said the IMF had not suggested a debt write-off, adding that the Eurogroup was committed to commence talks on a Greek debt relief, if the reforms moved forward.