Brussels, 08/11/2011 (Agence Europe) - The finance ministers of the eurozone are demanding that the big political parties in Greece sign a written declaration promising to support the objectives of the rescue programme and response to the eurozone sovereign debt crisis agreed at the eurozone summit on 27 October (see EUROPE 10483). In the evening of Monday 7 November, the chair of the Eurogroup, Jean-Claude Juncker, said the ministers wanted a letter signed by the two main parties reaffirming the country's pledge. Juncker said the request was the equivalent of the calls for national unity made for Portugal and Ireland, saying it was horrendously difficult to explain to German, Dutch and Finnish taxpayers why they should display solidarity when Greek politicians couldn't even agree amongst themselves about how the country should be rescued. EU Economic and Monetary Affairs Commissioner Olli Rehn said the Greek rescue plan was a two-way process because the eurozone wanted to help Greece as long as Greece takes its responsibilities on board. “The Eurogroup warmly welcomed the recent political developments in Greece, especially the decision of the two biggest political parties to support a government whose mission will be to implement the decision of October 26”, said the Greek finance minister Evangelos Venizelos in a press release. He is expected to wield great influence in the new coalition government currently under negotiation in Greece.
This written pledge from the Greek government is a precondition for the payment of the European section of the next instalment of the first rescue programme (€8 billion) needed by Greece to pay its bills next month. Rehn said this sixth instalment could be paid in November if unequivocal commitment is made by the new government. When the Greek government has fully accepted the 27 October eurozone agreement, the Eurogroup will meet to release the aid, probably by videoconference ahead of the next scheduled Eurogroup meeting at the end of the month. A further meeting of finance ministers is expected in December.
Once the Greek government coalition has been decided, the troika of creditors (the European Commission, IMF and ECB) will return to Athens to enter negotiations over the second rescue programme, which includes aid of €130 billion and voluntary contributions from the private sector to the tune of €100bn in the form of a 50% write-down in the value of their Greek bonds. Rehn admitted that the economic situation in Greece had deteriorated, but hoped the new government would be more serious about fighting tax evasion, describing it as a serious illness that was handicapping the country. (MB/transl.fl)