Greece is expected to continue talks with its creditors on Monday, following a major embarrassment last week when a memo allegedly containing conversations between International Monetary Fund (IMF) officials was leaked to Wikileaks. MIA correspondent in Athens reports that the talks will focus on sustainability of the pension system, deregulation and additional taxes that should close down a EUR 1.8 billion hole in the public finances.
Greek Prime Minister Alexis Tsipras reacted angrily after the leaked cable that appeared to show IMF officials discussing the need for a "credit event" to happen in Greece or renewed problems with its ability to refinance its debt hoping that it would force the Government to be more open to compromise. The officials, IMF's heads for Europe and Greece, allegedly also discussed the best timing when Greece should be faced with a financial crisis, and when it would cause the strongest effect. IMF President Christine Lagarde dismissed criticism from Tsipras, and asked him to guarantee the safety of communications of her team in Athens, as well as their personal safety, as the sides continue talks over Greece's financial crisis.
"This weekend's incident has made me concerned as to whether we can indeed achieve progress in a climate of extreme sensitivity to statements on their side. On reflection, however, I have decided to allow our team to return to Athens to continue the discussions. For them to be able to do they work, as you have invited us, it is critical that your authorities ensure an environment that respects the privacy of their internal discussions and take all necessary steps to guarantee their personal safety. The IMF conducts its negotiations in good faith, not by threats, and we do not communicate through leaks", Lagarde writes in her response to Tsipras.
Former Finance Minister Yanis Varoufakis, who was a key member of Tsipras' cabinet before resigning over his insistence that Greece defaults, was outspoken against the IMF following the leak. "As Wikileaks revealed today, the IMF is planning to stall until July to bring Greece to its knees again in order to force Angela Merkel's hand. It's time to stop Greece's fiscal water-boarding by an incompetent, misanthropic troika", Varoufakis said.