Eurogroup: 110 bln support package for Greece - The Best from Greece
Posted on: 03/May/2010
Eurozone's finance ministers decided on Sunday evening to activate the support mechanism for Greece. According to Eurogroup President Jean Claude Juncker, the total amount of a three-year support mechanism would reach 110 billion euros of which 80 billion would come from the other 15 eurogroup countries and the 30 billion from the International Monetary Fund (IMF).
According to Juncker, who spoke during a joint press conference at the end of the finance ministers' meeting, the European Commission and the European Central Bank have ascertained that Greece's acess to international markets was not sufficient anymore, and for this reason the eurozone decided to activate the support mechanism together with all the legal and technical tools necessary for its activation in all eurozone countries.
Moreover, Juncker announced that a eurozone countries' summit would be taking place on May 7, noting that Sunday's decision would not be re-negociated.
On his part, Greek Finance Minister George Papaconstantinou expressed his satisfaction over the "eurozone's important decision for the activation of the mechanism", noting that the Greek programme is a liable three-year programme which "will lead to the country's fiscal adjustment, to its recovery, to the promotion of necessary fiscal reforms and to the increase of competitiveness."
Papaconstantinou also underlined the Greek government's committment to do everything necessary in order to put the country's economy on the track of viable growth.
The Greek government on Sunday announced a fiscal adjustment programme for the country, envisioning a 36.4-billion-euro reduction of the budget deficit over three years to bring down the current 13.6 percent deficit to under 3 percent of GDP by 2014, in the wake of nearly two weeks of negotiations with EU Commission, European Central Bank (ECB) and International Monetary Fund (IMF) officials in Athens.
The "laundry list" of state spending cuts, increased taxes, social security reforms and labour market deregulation pave the way for activation of an EU-IMF support mechanism for the Greek economy, agreed to last month.
«« Let's get back to the News Overview
|The Best From Greece - The Greek Social and Business Network|