Brussels, 30/05/2011 (Agence Europe) - Nerves are frayed in relations between Greece and its international creditors (the European Commission, the European Central Bank and the International Monetary Fund) a few days ahead of publication of the creditors' fact-finding mission report on the country's ability to meet its budget targets and pay back its debts. Greek finance minister Georges Papaconstantinou said on Sunday 29 May that he had every reason to believe that the talks with the creditors would lead to payment of the latest batch of aid, some EUR 12 billion On the same day, thousands of demonstrators gathered in Athens to express exasperation with politicians and Greece's creditors.
Europeans are applying maximum pressure on the Greek government to get it to introduce more austerity measures and speed up the privatisation programme to help the country meet its 2011 budget targets (cutting the public deficit from 10.5% of GDP to 7.5% of GDP). EU Economics and Finance Commissioner Olli Rehn is quoted by German newspaper Der Spiegel as saying that the situation is very serious. He said Europeans were applying the same criteria as the IMF before deciding on whether to provide extra international aid to Greece The IMF is due to pay out more than EUR 3 billion of the EUR 12 bn due in June, but wants to be certain that Greece will have enough liquidity in 2012 to meet its financial commitments that year. Der Spiegel added oil to the fire by saying that the fact-finders' report contained alarming information. Last year, Greece was unable to meet the budget targets set out in its austerity programme. Constantinople said such statements had no foundation in reality because there is no fact-finders' report yet. At the end of last week, Greece's main political parties failed to reach agreement on the outlines of the austerity programme. (M.B./transl.fl)