The Wall Street Journal: Germany holds up Greece’s final bailout payment

The Wall Street Journal: Germany holds up Greece’s final bailout payment

Germany on Thursday held up the final bailout disbursement for Greece, a move indicative of how difficult it will be for the southern country to regain financial sovereignty even as it exits an eight-year bailout regime in August.

Eurozone finance ministers approved the €15 billion ($17.5 billion) aid payment at a meeting in Brussels, but Germany declined to sign off on the deal.

The setback came after Greek Prime Minister Alexis Tsipras announced late June he would postpone a value-added tax increase, scheduled for this summer, on five Aegean islands that have been hit by the migration crisis.

Check out: Greece gets green light to exit bailout program, but worries linger

Germany said Greece should fill the €28 million budget hole with other spending cuts, mainly from its defense budget.

An expanded version of this report appears on WSJ.com

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