Eurogroup President Jean-Claude Juncker announced an extraordinary Eurogroup meeting on Greece on July 3rd, 2011. Speaking to journalists after conclusion of the works of Euro zone finance Ministers in Luxembourg, Juncker expressed the hope that “until that date the Greek Parliament will have adopt the Mid-Term Austerity Package.” He stressed that the approval by the Greek Parliament is “absolutely crucial” and it must be given in time “so we can take the decision on July 3rd”. On that date, “the basic lines for a new support package for Greece will be taken” he added.
“It is very clear that the debt is sustainable, but it will remain sustainable only if Greece fulfils all the commitments it has agreed upon with the Troica,” warned Juncker .
Late on Sunday the Eurogroup issued a statement saying that approval of the Mid-Term Austerity Package by the Greek Parliament is a pre-condition for the further financing of the country.
Statement by the Eurogroup
The Greek authorities are embarking on a significant and necessary adjustment
effort. Ministers recognised the considerable progress achieved by the Greek
authorities over the last year, particularly in the area of fiscal consolidation.
Ministers are also conscious of the serious challenges that Greek citizens are facing
in these difficult times.
Ministers took note of the debt sustainability assessment prepared by the
Commission and the IMF. The assessment showed that debt sustainability hinges
critically on Greece sticking to the agreed fiscal consolidation path, the plans of
collecting EUR 50 billion in privatisation proceeds until 2015, and the structural
reform agenda which will promote medium-term growth.
Ministers look forward to the Commission’s Compliance Report, that requires the
finalisation of the updated Memorandum of Understanding, which is expected in the
coming days, reflecting the outcome of the ongoing negotiations between the Greek
government and the European Commission, in liaison with the ECB, and the IMF.
This, together with the passing of key laws on the fiscal strategy and privatisation by
the Greek parliament, will pave the way for the next disbursement by mid-July.
However, given the difficult financing circumstances, Greece is unlikely to regain
private market access by early 2012. Ministers agreed that the required additional
funding will be financed through both official and private sources and welcome the
pursuit of voluntary private sector involvement in the form of informal and
voluntary roll-overs of existing Greek debt at maturity for a substantial reduction of
the required year-by-year funding within the programme, while avoiding a selective
default for Greece.
On these conditions, Ministers decided to define by early July the main parameters
of a clear new financing strategy.
Ministers call on all political parties in Greece to support the programme’s main
objectives and key policy measures to ensure a rigorous and expeditious
implementation. Given the length, magnitude and nature of required reforms in
Greece, national unity is a prerequisite for success. (source: Europa.eu )
I propose the next Eurogroup meeting will be held in Athens. The EUro-gentlemen can start handing out €€€ bank-notes to the Indignant Greeks…
“Greece should leave the euro zone and reintroduce the drachma (pre-euro currency). No more Dutch tax money to the corrupt and de facto bankrupt Greek,” Geert Wilders said. He said that if the Dutch government joined a new bailout for Greece, then it “will have a major and very serious political problem with my party”.
“In Germany, Europe’s most widely read and influential newspaper, Bild said financially squeezed taxpayers were bristling at conservative Chancellor Angela Merkel’s readiness to cough up more relief for Greece rather than her own people. Will the Greek crisis ruin all hopes for tax cuts in Germany? In Germany more and more citizens are asking themselves — there is money for the Greeks but when will there be some for me, the simple taxpayer?” Bild said.”
“The conservative daily Frankfurter Allgemeine said Merkel was working feverishly to come up with a permanent EU financial stability regime “but is giving out the impression of a fire marshal in perpetual stress: several fires, few pails, no plan”.
“The German government calls this ‘crisis politics’ … But the citizen does not understand where this is going… this yo-yo-ing is difficult to explain to the voter,” the German financial daily Handelsblatt said in an editorial. Political pressure on Merkel from the conservatives and her coalition is rising immensely,” it said.”
“The liberal Munich daily Sueddeutsche Zeitung said Germans are “warily asking whether it can be right to tie up one package after another for a country being governed by corrupt elites. Should Greece not leave the EU, or reapply? … For a long time the Greek crisis has not been (so much) about money but about the biggest asset the EU has — its credibility. Its disastrous crisis management is making citizens, allies and financial markets nervous.”
http://www.athensnews.gr/portal/11/43471