Brussels, 22/11/2012 (Agence Europe) - Addressing the European Parliament on Thursday 22 November 2012, Euro Commissioner Olli Rehn said the time had come for Greece's European and international partners to reach a tangible outcome on the second Greek bailout because Athens has met all its commitments. He added that frankly, he did not see any reason why it would not be possible to decide on the aid plan.
The Eurogroup meeting ended on Wednesday morning without reaching agreement on the sustainability of the Greek debt, the final (but huge) obstacle to disbursement of an instalment of aid of up to €44 billion (see EUROPE 10735). The negotiations are focussing on the granting of additional guarantees by the eurozone bailout funds to enable Greece to buy back at low cost on the secondary markets some or all of the €50 billion to €60 billion of Greek bonds still in private hands. A reduction in interest rates and extended maturity on the loans granted to Greece since 2010 are also on the table.
Whatever gets decided, Rehn warned that the various measures do not exclude any reassessment of the sustainability of Greece's debt in the next few years and new decisions in the light of how the situation develops. In other words, European taxpayers will have to agree to lose money on the loans to Greece, as demanded right now by the IMF.
The Commissioner praised the achievements of the Greek government, despite opposition from the people directly affected by the reforms. He said it was time to get over the damaging and untrue story that no progress has been made in Greece. He gave a taster of positive outcomes - the 89 “priority actions” demanded in the spring of this year have all been passed; budget savings have reached €13.5 billion or 7% of Greek GDP; the retirement age has been increased to 67; tax collection has improved; healthcare spending has fallen by €1 billion so far in 2012 and a further €800 million of savings are planned for 2013-2014. On Monday 26 November, Eurogroup hopes to reach final agreement on continuation of the Greek programme, six months after the elections that carried prime minister Antonis Samaras to power. (MB/transl.fl)