EU leaders expressed their support to Greeks provided that they will stick to austerity programme. They also gave a vague promise on growth measures. As Greece’s lenders have no idea who will challenge the failed EU policies after June-17 elections, they choose to send caretaker prime minister Panagiotis Pikrammenos home with a pat on the shoulder and the usual demand “Stick to Austerity”. Important issues about Greece will be taken up during the EU regular Summit next June.
Below an article by Reuters via Business-Standard:
EU Urges Greece to Stay in Euro
Papers in Athens break the news to Greeks that European leaders have made no concrete moves to ease their debt pressures.
Greece is urged to stay in the euro under existing austerity terms, even as instructions came to prepare exit plans.
At the first EU summit in Brussels for France’s newly elected president, yesterday, the group recognised the ruined country’s hardships and promised to release development funds aimed at sparking growth.
François Hollande wants this added to the austerity mix.
However, German Chancellor Angela Merkel made clear a u-turn was out of the question.
She said: “We want Greece to stay in the euro, but we insist that it keep to commitments that it has agreed to, that the memorandum of understanding be fulfilled.”
Hollande raised the hotly contested subject of shared eurozone debt through eurobonds.
He said: “I respect Mrs Merkel’s point of view when she says eurobonds are not an instrument of growth in themselves. They are a tool that could, under certain conditions, lead to growth. So, it’s an ongoing debate.”
If Greece caves in, others are exposed too – Spain, Italy, Portugal… with many saying that solidarity bailouts for them would overstretch existing funds.