EU comes out with options to help Greece
By Slobodan Lekic |
March 15, 2010, Monday
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Print Edition
Print Edition
THE European Union has developed a set of options to help Greece overcome its financial crisis, which has unsettled the euro currency and markets globally, officials said on Saturday.
But Athens will have to arrange for possible loan pledges with individual EU governments, they said.
"There are intensive consultations on a bilateral basis in case that Greece needs support for a special loan guarantee that a number of countries could come to provide," said Cristina Gallach, spokeswoman for the Spanish presidency of the 27-nation EU.
Gallach emphasized that Athens has said it would not need any such help, but that the EU must be ready "just in case Greece comes and says we need a bailout."
Technical work has been going on for several weeks to prepare a set of options on how to assist the Greek government carry out its austerity program, which is designed to gradually cut the country's massive budget deficit, Amadeu Altafaj Tardio, spokesman for the EU Economic Commission, said.
He did not elaborate on the details, but said the options will be submitted to European financial and economic ministers who will meet this week.
Athens has pledged to slash its budget deficit from an estimated 12.7 percent of gross domestic product in 2009 to 8.7 percent this year - cutting the annual shortfall from 30.9 billion euros (US$42.2 billion) to 22.5 billion euros.
EU Economy Commissioner Olli Rehn also has said on several occasions the EU is ready to propose a European mechanism for coordinated action if requested by Greece.
Greece says it is rapidly adopting EU-proposed financial reforms, and that the majority of those recommendations have already been implemented. Last Friday, Athens said it had exceeded its deficit-cutting targets in January and February.
Last week, the government toughened its austerity measures, with wage cuts and tax hikes worth an extra 4.8 billion euros in savings.
But Athens will have to arrange for possible loan pledges with individual EU governments, they said.
"There are intensive consultations on a bilateral basis in case that Greece needs support for a special loan guarantee that a number of countries could come to provide," said Cristina Gallach, spokeswoman for the Spanish presidency of the 27-nation EU.
Gallach emphasized that Athens has said it would not need any such help, but that the EU must be ready "just in case Greece comes and says we need a bailout."
Technical work has been going on for several weeks to prepare a set of options on how to assist the Greek government carry out its austerity program, which is designed to gradually cut the country's massive budget deficit, Amadeu Altafaj Tardio, spokesman for the EU Economic Commission, said.
He did not elaborate on the details, but said the options will be submitted to European financial and economic ministers who will meet this week.
Athens has pledged to slash its budget deficit from an estimated 12.7 percent of gross domestic product in 2009 to 8.7 percent this year - cutting the annual shortfall from 30.9 billion euros (US$42.2 billion) to 22.5 billion euros.
EU Economy Commissioner Olli Rehn also has said on several occasions the EU is ready to propose a European mechanism for coordinated action if requested by Greece.
Greece says it is rapidly adopting EU-proposed financial reforms, and that the majority of those recommendations have already been implemented. Last Friday, Athens said it had exceeded its deficit-cutting targets in January and February.
Last week, the government toughened its austerity measures, with wage cuts and tax hikes worth an extra 4.8 billion euros in savings.
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