Greeks take debt deal to Brussels
GREEK party leaders finally struck a deal yesterday over spending cuts needed for a new bailout – but the plan still faces opposition in both Brussels and Athens.
European officials appeared unimpressed last night, warning that Greece must show that it is serious about cuts and reforms to make its debts sustainable.
The heat surrounding negotiations led to Greek finance minister Evangelos Venizelos warning that a parliamentary vote on austerity measures, planned for this weekend, effectively meant a ballot on whether or not to stay in the euro.
Prior to that vote, Eurozone finance ministers in Brussels – known as the Eurogroup – must judge whether the deal is acceptable.
“As far as I know we still don’t have the conditions that were clearly required by the council [of EU leaders],” said German finance minister Wolfgang Schaeuble last night.
“Greece has to implement what it has not implemented from the first programme before we can decide on a second,” Schaeuble added.
Jean-Claude Juncker, who chairs the Eurogroup, laid down the gauntlet: “No disbursement before implementation,” he warned.
Olli Rehn, European commissioner for economic affairs, said that it is up to the Greek government to “convince its European partners” that the second aid package will put it on a long term sustainable footing.
Earlier in the evening the Greek government released a statement announcing a conclusion to drawn-out talks with the International Monetary Fund, European Union and European Central Bank – known as the troika.
Yet the short announcement contained few details of the deal, and Dutch finance minister Jan Kees de Jager said it was still not clear that Greece has agreed to meet the conditions of the next bailout package.
“I want to hear from the troika what has been discussed,” he said. “From experience I know you must look very carefully to see if it all makes sense.”
“The Greeks still have to do their homework from the previous package before we agree on a new package,” added Austrian finance minister Maria Fekter.
Yet back in Greece, various austerity measures are vehemently opposed, with unions calling a two-day strike starting today and protesters continuing to hit the streets.
Opposition within the government was also apparent yesterday as minister Yannis Koutsoukos resigned over the package, along with conservative Yiannis Manolis.