Germany can veto aid to Greece

Germany will block the disbursement of financial aid to Greece if Athens do not fulfill the promises for the implementation of austerity measures in exchange for the previous tranches, reports The Daily Mail.

According to Michael Fuchs, the second man in the CDU,  Germany would veto further EU aid decisions. Fuchs said that Germany had reached "the limits of what can be done." "Even if the glass is half full, it is not enough for the new installment," - said the party leader.

Inspectors of  the EU, IMF and European Central Bank will make a verdict on  Greece with its obligations by mid-September. Only after that Athens will be able to get from Brussels  the next tranche of € 25 billion

Greece, whose debt even after restructuring accounts for more than 130% of GDP, is vitally interested in receiving assistance from the EU, as it is now unable to borrow on the open market. However, the condition is to cut social programs and raise taxes.

Although  the Greek government has agreed with the obligations, Brussels fears that in reality Athens continues to spend too much. In previous years, the Greek government artificially lowered the budget deficit.

Greece's GDP in the second quarter decreased by 6.2%, while the forced spending cuts make it more difficult to obtain financial assistance from international lenders, says Reuters.