France proposes growth-linked debt relief for Greece

Prior to the June 15th Eurogroup meeting that resulted in the release of a €8.5 billion tranche to help met Greece’s debts, France’s finance minister had already been cooking up his compromise.

At the fore of negotiations, France’s newly appointed finance minister, Bruno Le Maire, proposed that current austerity measures imposed by Germany and the IMF are too harsh, instead proposed a medium-term debt relief “mechanism” that would allow Greece to pay more when their economy is doing well, and less when the economy is stalling.

By linking Greece’s debts to its growth, France’s newly elected administration led by President Emmanuel Macron is already making good of its commitments to come to Athen’s aid and defend the eurozone from itself.