After the euro countries agreed on the weekend, with Greece to negotiate a new loan package under conditions now facing further controversy over the acute financial needs. Controversial is the question of how the Greek government to be put in a position, on Monday to meet maturing loans.
The European Commission proposes that money from the European Financial Stabilisation Mechanism (EFSM) to use. The proposal is controversial. Because that would also adhere States which have not adopted the euro. Britain has already announced resistance. The Czech Republic and Sweden are skeptical. Commissioner for Economic and Monetary Affairs European Commission Vice President Valdis Dombrovksis admitted that the solution is not ideal. “We have no simple solutions to the table,” he said, however, on Wednesday in Brussels. “That’s the problem.”
During the weekend, the state and government of the euro countries had agreed to a negotiating marathon on with Greece over a new , up to 86 billion-euro loan program to negotiate. A condition for the beginning of the talks is that the Parliament in Athens decides a set of reforms and austerity measures.
condition for a new loan package further reforms , Until that are negotiated, are likely to take at least four weeks. Against this backdrop, the euro zone countries agreed that Greece should get a bridge loan that about makes it possible to pay an overdue loan rate on Monday at the European Central Bank. The financing needs in July is seven billion euros.
Two options remained
The European Commission has several evaluating ways to raise the sum, Dombrovskis said. At the end are two left. One possibility would have been that a EU member Greece is a bilateral loan, for which, however, no one agreed. The second option was to resort to the EFSM, which was created in 2010 as a temporary rescue fund all the EU countries during the financial crisis.
Unlike the former rescue fund EFSF is the EFSM a Community instrument of all 28 EU member states, not just the countries of the euro zone. Actually, the EU member states had agreed in late 2010 on, no longer to use Europe’s first bailout fund for new utilities. Dombrovskisgab to that was a “political” problem that we must solve.
Even Finance Minister Wolfgang Schäuble (CDU) is skeptical. He had already warned on Tuesday the European Commission to tap the EFSM. It brings nothing to present ideas that could find no majority at the end and only served to blaming others.
Schäuble also referred to a declaration the Euro Summit. “The risk of not swift conclusion of the negotiations is fully in Greece”, is written therein. This is interpreted from the perspective of the Federal Ministry of Finance, that the Greek government is liable for a possible failure of the bridge loan.
from two sources is now heard, that is wanted for ways to mobilize Greek guarantees for loans. For example, funds could be declared as an advance payment of EU budget funds to Greece, it said. “You can manage,” said a well-informed person. The solution would also find that the consent of the UK. This presentation is, however, contradicted by other negotiating groups. From Greece no financial guarantees for the sum would be required, it said on Wednesday.
Safety for non-euro countries
One thing is certain, it is searching for ways to back up those countries that have not adopted the euro. “We are therefore working to protect, if the EFSM loan will not be repaid to opportunities that non-euro members from negative consequences”, Dombrovkis said. So it is about conceivable that gains that central banks made with Greek government bonds, as to deposit collateral in the event that Greece remains the loans guilty.
Another possibility is to look at the future cash flows of the EU budget. A source said that Britain had signaled a willingness to consent on Wednesday in this context.
The Commission presented on Wednesday in addition prior plans, Greece will be strengthened economically to help. The government should therefore receive preferential treatment in accessing EU funding money. For the elapsed period Athens is taken from the obligation to contribute financially to the EU-funded projects – which saves two billion euros in Greek budget
The pre-financing for programs between 2014 to 2020 is to be increased, which make available another billion. By 2020, Greece are 35 billion euros in funding available.
No comments:
Post a Comment