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EC in contact with World Bank for a €3-billion loan to Greece

Spokesperson of European Commission Annika Breidthardt confirmed on Friday that the EC is in contact with the World Bank for a loan to Greece. “The European Commission is in contact with the World Bank to study the possibility of a loan to Greece,” she said adding that purpose of the loan is to support active labor policies.

She added that “many of such these policies have been implemented in the past” with the support of the Commission. Breidthardt noted that under the Financial Framework 2014-2020, funds have been already allocated to Greece for active labor market policies.

“We continue to be ready to support Greece in its efforts to address social exclusion and reduce youth and long-term unemployment, but also to provide the necessary support for economic recovery,” Breidthardt said adding that it was “too early for details.”

Late on Thursday, Politico revealed that Greece was in contact with the World Bank for a new loan.

According to WallStreetJournal, the amount of loan Greece is seeking from the World Bank is 3 billion euros.  Government officials told WSJ that Athens looking for World Bank funds for a program to reduce the country’s 23% unemployment rate by creating around 100,000 job openings a year over the next three years.

PS Similar EU – World Bank policies? I thought the EU’s Financial Framework Funds were not a loan…. Occasionally, I think too much. On the other hand a loan to fund short-term jobs on 500 euro per month is no long-term solution for the million of unemployed people and their families.

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One comment

  1. Giaourti Giaourtaki

    If you create these jobs by building up wooden-framed windmills it would be good paid jobs for cheap energy, free of trade-bullshit that steals away most of the profits.