Greece to present new austerity plan
GREECE will present a new austerity package to Eurogroup chairman Jean-Claude Juncker this morning amid signs that the ECB could be willing to strike a compromise with Germany over Athens’ second bailout.
ECB vice president Vitor Constancio said that contrary to recent reports, the Bank would be willing to consider a very mild form of voluntary burden-sharing to make private investors join in the pain, a key German demand.
“We have never refused every form of private sector involvement in Greece,” he said. “Some forms of private sector involvement which are voluntary… we have always admitted as possibilities.”
The IMF is expected to conclude its review of Greece’s finances today, with Athens’ latest fiscal plan said to include a faster sell-off schedule for €50bn (£44.2bn) of state assets and €6.4bn of new budget cuts, including tax rises.