It is welcome news that Germany seems to be swinging in favor of a role for the International Monetary Fund (IMF) in helping Greece salvage its financial credibility and reform its basic economic structures.
After weeks of pledges of political and financial support, Angela Merkel appears ready to send Greece crawling to the IMF. Germany cites legal reasons for its position. In past rulings, its constitutional court has interpreted the stability clauses in European law in the strictest possible sense. "It is hard to say whether this argument is for real or is just an excuse not to sanction a bail-out that would be politically unpopular. It is probably a combination of the two," according to Wolfgang Munchau in the Financial Times on March 21st.