Jeroen Dijsselbloem’s PvdA (social democratic party) was the biggest loser in the Dutch elections on 15 March. Dijsselbloem has ruled out the possibility that his party would participate in the next coalition government.

It may be in this context that he put forward some reform proposals in an interview with the German newspaper FAZ on 19 March which would certainly please the German finance minister. Echoing the proposals of Wolfgang Schäuble, who has already suggested in January that, if the IMF decides to pull out of the Greek bailout programme, the EU could come up with its own solution, Dijsselbloem suggested that the ESM should take on more responsibilities.

Until then, Germany had always insisted on the participation of the IMF. But the IMF has shifted its position in favour of a debt relief by the EU, and has even made its participation conditional upon it. Germany has always been against any sort of debt relief for Greece, insisting instead that reforms of the welfare state and economic reforms were the only solution to make Greece more competitive and will eventually pull it out of the debt spiral. Schäuble indicated at the beginning of March that the ESM could be developed into a European monetary fund.

In the same edition as Dijsselbloem’s interview, Schäuble wrote a one page contribution in which he argued that:

“We could develop further the role of the ESM into a European monetary fund: we could enable it identify risks in the member states, to control and possibly--in conjunction with the member states--to control those risks. The ESM could also take over negotiations on conditions for an ESM programme from the European Commission. If an ESM programme is approved, the participation of the creditors in the restructuring of the debt could in future be defined by clear and predictable principles. A predictable and foreseeable mechanism for the restructuring of public debt would also strengthen the market discipline which would, together with the rules of the Stability and Growth Pact, credibly underline the no bail-out principle of the Treaties.”

Dijsselbloem to break up Troika, reform implementation of SGP

Dijsselbloem said in the interview that the ECB is feeling increasingly uncomfortable in its role in the Greek debt crisis. He also argued that the European Commission is busy with other things, and that the ESM should take over a leading role in future rescue packages.

Regarding the respect of the stability and growth pact, Dijsselbloem said he shares:

“[Schäuble’s] criticism of the way the commission defines its role as supervisor of the budgets. I have nothing against it if Jean-Claude Juncker calls his commission political. But the budgets of the member states cannot be controlled politically, on a case by case basis. If numbers are interpreted politically, we get serious problems. This must be a very neutral and technical thing. And yes, maybe this task should be taken up outside the commission. I can imagine an independent, autonomous body which takes care of the numbers. This does not preclude the commission from drawing political conclusions.”

Dijsselbloem to stay until January 2018 and further?

The post of Eurogroup president has, so far, always been attributed to a current finance minister of a Eurozone country. However, the rules do not specify this, and Dijsselbloem, who has been Eurogroup president since 2013, hopes his colleagues let him stay on to finish his second mandate in January 2018 and has argued for the creation of a full-time post.

On 20 and 21 March, the Eurogroup met but did not discuss Dijsselbloem’s future.

Filling the impending vacancy will produce intense negotiations between member states. Currently, the conservative Spanish finance minister, Luis de Guindos, and the socialist Slovak finance minister Peter Kažimír, are rumoured to be other favourites. One of the biggest concerns is the balance in representation of the political parties, with the socialists aware that that the conservatives are currently occupying the posts of president of the European Council, European Commission and European Parliament. Another concern is the balance between member states, north and south, east and west.

A spokesman for Luxembourg’s finance minister, Pierre Gramegna, told Delano on Wednesday that none of these topics were discussed at this week’s Eurogroup meeting and “there was no need for speculation until the situation clarifies in the Netherlands”.

“Spending money on alcohol and women”

Dijsselbloem has been under fire from the international media for not apologising for his insinuation that the countries who have benefited from bailout packages such as Greece and Portugal, have “spent their money on alcohol and women” and that they “cannot afterwards ask for support.”

Using such stereotypes to describe the dire economic situations in some southern countries was seen as insulting and Dijsselbloem was accused of not understanding what these countries had been through. Despite being given several opportunities to apologise, Dijsselbloem contended that:

“I am a social democrat; I very much value the principle of solidarity, within society, within Europe. But it must always come with commitments and an effort to do the utmost what the individual or the country can do to strengthen its own position--also in socio-economic terms. But you must take responsibility to abide by the fiscal framework that we have agreed on; you must put in all the efforts that you can to strengthen your own economy--in other words do reforms and adjustments to make sure you are as strong as possible. If all of that is done, solidarity is very much required and should always be available. I will not apologise--certainly not. You don’t need to read my statement because I know my statement-- it came from this mouth. I need you to understand that if you want to maintain public and political support throughout the Eurozone and the EU for solidarity, you must always talk about what commitments, what efforts must be put in by everyone to maintain that solidarity.”

Several MEPs, and Portugal’s foreign minister Santos Silva, have strongly criticised the remarks, saying he was not fit to be president of the Eurogroup and should resign.

Seperately, it was confirmed by the Greek authorities on Wednesday 22 March that Dijsselbloem was the intended recipient of a letter bomb.