Brussels, 30/06/2011 (Agence Europe) - The definitive adoption by the Greek parliament on Thursday 30 June of the legislation that will implement medium-term budgetary strategy and orchestrate the privatisation programme, which is supposed to bring in €50 billion, will open the way to payment of the €12 billion tranche of aid planned in the current Greek programme. The Eurogroup is expected to make a decision on this on Sunday 3 July. It will also make a commitment to finalising the second financial bailout of around €110 billion.
The president of the European Commission, José Manuel Barroso, and his counterpart at the European Council, Herman Van Rompuy, described in a joint press release the second consecutive adoption vote the day before on the 2011-2015 budgetary strategy as an act of national responsibility (EUROPE 10408). They consider that “the conditions are now in place for a decision on the disbursement of the next tranche of financial assistance for Greece and for rapid progress on a second assistance package”. They add: “We reiterate Europe's unwavering support and solidarity for the Greek people (…) we repeat our call for all political parties to work together to take to their country forward.”
The second aid plan to Greece involves voluntary participation of the private sector on the basis of the principle for refinancing part of the Greek debt when its payment deadline arrives (the roll over principle). During a monetary dialogue with the European Parliament (see other article), the president of the ECB, Jean-Claude Trichet, reiterated the position of the European institution in favour of a voluntary participation of the private sector, which would not lead to any default being made by Greece. According to Trichet, “the country's adjustment is the first thing that needs doing”; the second involves the launch of privatisation and for that Greece has something in its favour because this could reach 20% of national GDP. This does not, however, answer the question put by MEPs, who wanted to know about what risks these privatisations could create because they were being pushed through under pressure. (M.B./transl.fl)