Eurogroup Chairman Dijsselbloem said that Greece must apply for a bailout extension on February 16 at the latest in order to keep its eurozone financial backing. The February 16th meeting would be Greece’s last chance to apply for the bailout extension because some euro zone countries will need any agreement approved by their parliaments.
Jeroen Dijsselbloem told Reuters that Greece had to apply for an extension of its reform-for-loans plan by Feb. 16 to ensure the euro zone keeps backing it financially.
But extending the bailout programme, even temporarily, would mean agreeing to its terms that are hotly contested by Greece, leaving little common ground between Athens and the euro zone.
“We will hear on Wednesday from the new Greek government what their ambitions are, how they want to move forward with the current programme,” Dijsselbloem said in an interview.
He stressed that the Feb. 16 meeting would be Greece’s last chance to apply for the bailout extension because some euro zone countries will need any agreement approved by their parliaments. The EFSF euro zone bailout fund, which is in charge of lending to Greece, will need time to complete its formalities too.
“When we set the date for the 16th of February for the Eurogroup we did look at that. Time will become very short if they (Greece) won’t ask for an extension (by then),” said Dijsselbloem, who is also Dutch finance minister.
In an interview to Nikkei, managing director of European Financial Stability Facility Klaus Regling warned Greece that without agreement there would be no more funds available from EFSF.
#ESM #Regling: if there is no agreement w/ new Greek Gov there will be no more money available but it’s too early to judge what will happen.
— ESM (@ESM_Press) February 6, 2015
Dijsselbloem announced on …Twitter today that an extra Eurogroup meeting will take place on February 11th, the day before a summit of EU leaders.
Extra #Eurogroup on #Greece on Wednesday 11 feb, start 17.30 in Lex-building.
— Jeroen Dijsselbloem (@J_Dijsselbloem) February 6, 2015
Greece’s coalition government is scheduled to reveal its policy program on Sunday, February 8th, while a vote of confidence will take place Tuesday, February 10th, midnight.
PS and then hop! hop! hop! to Lex-building and to Dijsselbloem’s arms.
I hope Greek government will stay defiant. It’s like tossing a coin: heads – they do not win (they agree on Greek government pledges) and tails – Greek will win and gain competitiveness with their own currency.
When I read mr. Varoufakis I have concluded he is the ONLY finance minister in the Euro Zone who knows what this crisis in the EZ is all about.
They fear the latter. Seeing Greece coming back enstrengthened in 2-3 years will put the same idea of abandoning “Germanised Europe” and seek the solution by disbanding the common currency.
Other solution is “fiscal transfer union”, but are they willing to approach it? It is massively opposed on the richer EZ-countries.
But this is “debt transfer union” what we currently have got, and it is doomed to fail, nevertheless.
Greece can survive without euro. There will be much turmoil at the beginning, but later – less unemployment and lower nominal salaries. There will be some equilibrium. The only thing is : Syriza should have said it – maybe more people would vote for boring parties, like Samaras, Venizelos or To Potami.
Wow, I thought that Henry Myllyniemi is supporting Syriza – but he wishes the same – Grexit and more competitiveness with lower nominal (but not necessarily real) salaries.
Somehow I think that Samaras and growth of 1 % – this year maybe 3 % – would be better for me if I voted – but Greeks chose democratically – maybe they chose Grexit. Of course, Syriza still may blink. Like Dijsselbloem said – 8 days is enough.
To say honestly, for Europe – Tsipras and quite probably Grexit – is much better than all this torture and boredom. I hope that there will be a signal to Podemos – We can – that We Cannot – No podemos.
I heard someone saying ‘torture’ is this boring monologue of yours, your monotonous litany, the dull whining and the not worked-up communist past. I wonder whether Poland wants a place in the eurozone
I second that motion!
I hope Poland will not be a member of Eurozone.
Our government should stick to their guns.we do not wish to continue this fiscal waterboarding stupidity
I hope you will not ban this technocratic crap : 1999 Greece was 2 times richer than Czech Republic and 3 times richer than Poland. Now the level is almost the same, but Greece has an enormous crazy debt. Are you sure that euro was good for Greece ?
PS. Mr Krugman says that euro probably will not survive – his last lectures. So I do not wish it :).