Go-ahead of the finance ministers of the Eurogroup on the third bailout of Greece. The package is worth 86 billion over the next three years. The first tranche of aid should be 26 billion Euros.
The Eurogroup has asked Greece to create and make operational by year-end fund for privatization, which will also include some banks after recapitalization. The fund will carry 50 billion putting assets on the market.
“Today I am pleased to say that all parties fulfill their commitments.” This was stated by the EU Commission President, Jean-Claude Juncker. “Greece is meeting its commitments and are making ambitious reforms.” The message of the Eurogroup today, he adds, “is loud and clear: Greece is and will remain irreversibly member of the euro zone and the European Commission will support Greece on its path to equitable growth, to create jobs.”
The first tranche of 26 billion will be divided into two sub-tranches: a 10 billion will be available immediately for the recapitalization of banks, the second, from 16 billion, will be paid in several times, starting with 13 billion by August 20. The rest will be given in the fall following the implementation of the measures contained in the Memorandum. A second tranche of 15 billion for the recapitalization of banks will be made available after the first review of the program and no later than November 15, following a review of asset quality and stress tests.
The Eurogroup opens then even a debt restructuring: it is ready to consider, if necessary, possible additional measures on greek debt (lengthening maturities and grace periods), but conditioned the implementation of the Memorandum. And only after the first revision. Also it reiterated that the Eurogroup has ruled out any cut of its face value.
“The deal puts Greece in a position to restore growth and hence employment. There is not only financial stability but also reforms that modernized the country and helps to put the banks in terms of financing the economy “Thus Economy Minister Pier Carlo Padoan. “Everyone did their part, and the government Tsipras failed to push through a package of very important reforms, erasing some counter measures taken at the beginning,” the minister added.
Meanwhile, on Friday morning greek parliament had approved the agreement with the creditors. Despite the difficulties, the internal split in SYRIZA, the necessary reverse of some of the measures taken in recent months, the greek Parliament approved the third aid plan with a very large majority, along with the third package of measures that the eurozone would see in advance, as proof of his good will.
A total of 57 reforms, including the reintroduction of collective redundancies and the review of bargaining, the abolition of the baby pensions and exemptions for farmers, privatization.
For the French economy minister Michel Sapin is an “important work done by the Greek Government who took political responsibility after the vote this morning,” showing that he has done all that ‘ Eurozone had asked him, even if this entailed great sacrifices that Tsipras is paying also politically.
The party of Prime Minister seems to have begun to split, with the birth of the anti-Memorandum hardliners that Syriza not forgiven him of having compromised with Europe. But the prime minister is convinced that he took home the best possible deal, and the good work of the greek government is appreciated by all its European partners.
“We are encouraged by the vote,” said the European Commission , which together with the ECB praised the “good cooperation” from the Greek authorities in the drafting of the Memorandum. “The Greeks have approved three reform packages, have done a lot in terms of commitment,” said Minister of Luxembourg Pierre Gramegna economy.
The doubts to the Memorandum signed by all the institutions (Commission, ECB, IMF, ESM) were mostly Germans, but were eventually overcome. The Washington institution instead said that “will evaluate once measures will be taken on debt restructuring.” But the eurozone is not going to talk about debt on October 1, that is, after the first review of the program.
In the Parliament in Athens, the agreement was approved with 222 votes in favor, 64 against and 11 abstentions. Tsipras will also seek a vote of confidence after 20 August. The vote held today in Parliament did in fact record a substantial internal revolt: only 118 MPs would be referring to the ruling coalition who voted ‘yes’ to the aid plan.
The former Finance Minister Yanis Varoufakis voted against . Speaking in the courtroom before the vote, the former holder of Finance announced that it could not give its support to the new bailout. Responding to criticism indirect about his work during the months of negotiations with creditors, Varoufakis said he felt very proud “to have given to many Greeks during the five months of negotiations hope and courage.” Statements that aroused ironic comments of some members, says the website of Focus. “That’s why you have closed the banks?” Someone asked. Varoufakis – who recently said that, in his opinion, the third package “will not work” – he added that if the prime minister wanted to, he would give up his seat in parliament.
Tsipras. The head of the Greek Government had made clear in his speech before the assembly of not repenting of the agreement reached in Brussels last month, and recalled that he had received a mandate for Grexit. “We took a painful decision of responsibilities, but necessary,” he said, alluding to the agreement, noting that then follow the road that would lead to a return to the drachma would be equivalent to a suicide.
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