Brussels, 21/06/2011 (Agence Europe) - On Tuesday 21 June, the president of the European Commission, José Manuel Durão Barroso, suggested topping up the Greek austerity programme with additional aid of €1 billion, to allow Greece to invest in the sectors which drive growth, notably by means of faster and more efficient absorption of the structural funds. “I would like to ask the European Council to discuss what we can do to support Greece, beyond its budgetary consolidation efforts, to improve competitiveness”, he said. He put “the money available at €1 billion”. In Brussels on Monday evening the Greek prime minister, George Papandreou, is believed to have expressed his interest in this initiative. Technical assistance may also be forthcoming to help Greece to resolve a deficit in its “administrative capacity”, said Barroso.
The president of the Commission hoped that the reshuffled government would gain the confidence of the Greek government (the vote being scheduled for the night) and that on Tuesday 28 June, the Greek MPs would approve the additional austerity measures of €28 billion which have been recommended to allow Greece to observe its medium-term budgetary commitments. This stage is vital to allow the tranche of aid of €12 billion provided under the current Greek programme (EUROPE 10401) to be disbursed in early July. If this payment is not made, Greece will default, which could destabilise the whole of the eurozone. Barroso sent out a “sincere and vehement” call for political consensus on the modified programme. Even if the support of the opposition does not constitute a formal condition for the aid to be disbursed, it is a key to the success of the programme, he added, rejecting any “plan B” to be arrived at by renegotiating the terms of the bailout.
Have you any message for the northern Europeans who are tired of paying for Greece and the southern Europeans who refuse to tighten their belts any further? “A major crisis in Greece will be a major crisis in Europe”, Barroso warned. He explained that the action of the creditors in Greece is based on two pillars: - “solidarity”, in the same way as a family should support any of its members who are in trouble; - “responsibility” invoked to safeguard the stability of the eurozone. A solution to the Greek crisis can therefore only be found by consolidating public finances, speeding up privatisations and implementing structural reforms. Barroso went on to stress: “the lesson we learn from this crisis is that we need more Europe, not less Europe”. As for the division of the costs of the second bailout, he pleaded for a voluntary participation of the private sector in such a way as not to lead to a credit event or Greece's default, and with the ECB's blessing every step of the way. (M.B./transl.fl)