The former Minister of Foreign Affairs Nikos Kotzias is reportedly ‘disappointed’ by the abstention of the Greek government from the recent vote at the United Nations on sovereign debt restructuring. At the same time Mr. Kotzias was highly critical of the caretaker government, stressing that it is meant to serve the country for the elections, rather than change the policy of the previous, elected government.
The shift in policy at the behest of the caretaker Finance Minister, he argued, exceeds the powers of the caretaker government, which should have first consulted the elected PM Alexis Tsipras on the matter. Furthermore, the former Minister claimed that Alexis Tsipras underlined the need to participate in the process. According to Mr. Kotzias there is a plethora of messages towards Greece’s permanent mission at the UN on the matter.
The resolution, which was approved by 136 votes (with six against and 41 abstentions) urges both debtors and creditors to act in good faith and with a cooperative spirit to reach a consensual rearrangement of sovereign debt.
While the resolution is non-binding, it has considerable political importance, as it includes 9 main principles on debt restructure, include the right for each sovereign state to design its own macroeconomic policy, including restructuring it sovereign debt, which should be frustrated or impeded by any abusive measures.
The USA and European Union have expressed their objections to the resolution, with the EU arguing that the International Monetary Fund being the suitable body to host a global discussion on the subject.
