Juncker 'Confident' On Greek Bailout Deal

by Ulrika Lomas, Tax-News.com, Brussels

16 February 2012

Luxembourg’s Prime Minister and President of the Eurogroup Jean-Claude Juncker has underlined his confidence that the Eurogroup will indeed be able to implement all the necessary decisions regarding Greece’s second adjustment programme during its forthcoming meeting on February 20.

Following a Eurogroup conference call to discuss the outstanding issues regarding the EUR130bn (USD170bn) bailout agreement, Juncker underscored that “substantial further progress” had been made.

He explained that: “First, we received the strong assurances provided by the leaders of the two coalition parties in Greece's government. Second, the Troika finalized and presented its analysis on the sustainability of Greece's public debt. Third, further technical work between Greece and the Troika has led to the identification of the required additional consolidation measures of EUR325m and the establishment of a detailed list of prior actions together with a timeline for their implementation.”

Juncker added: “Further considerations are necessary regarding the specific mechanisms to strengthen the surveillance of programme implementation and to ensure that priority is given to debt servicing. This will strengthen debt sustainability further.”

The Eurogroup President ended: “On the basis of the elements that are currently on the table and the above-mentioned additional input, I am confident that the Eurogroup will be able to take all the necessary decisions on February 20.”

Greece’s fragile ruling coalition recently united on plans to lower the minimum wage, to significantly cut public sector jobs, to liberalize the country’s labour laws, and to negotiate a debt write-off with banks.

The government is also said to be considering spending cuts and tax increases of around EUR13bn from 2012 to 2015, instead of the EUR7bn initially planned.

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