EU Agreement on Greece

EU Agreement on Greece
Statement by the Eurogroup

Eurogroup Ministers concur with the Commission and the ECB that market access for Greece is not sufficient and that providing a loan is warranted to safeguard financial stability in the euro area as a whole. Following a request by the Greek authorities, euro area Ministers unanimously agreed today to activate stability support to Greece via bilateral loans centrally pooled by the European Commission under the conditions set out in their statement of 11 April. Parliamentary approval, needed in some Member States prior to the release of the first tranche, is expected to follow swiftly.

The Eurogroup is confident that the ambitious fiscal adjustment and comprehensive structural reforms under the Greek authorities' programme are appropriate to stabilise the fiscal and economic situation and address the fiscal and structural challenges of the Greek economy in a decisive manner. The programme is supported by strong conditionality. It will thereby also help restore confidence and safeguard financial stability in the euro area.

In the context of a three year joint programme with the IMF, the financial package makes available € 110 billion to help Greece meet its financing needs, with euro area Member States ready to contribute for their part € 80 billion, of which up to € 30 billion in the first year. The first disbursements will be made available before the payment obligations of the Greek government fall due on 19 May.

Euro area financial support will be provided under strong policy conditionality, on the basis of a programme which has been negotiated with the Greek authorities by the Commission and the IMF, in liaison with the ECB. The programme has been approved by the Greek Council of Ministers on 2 May and endorsed by the Eurogroup on the basis of a Commission and ECB assessment.

In this context, the Eurogroup welcomes the efforts to date by the Greek Government to resolutely address the fiscal imbalances as well as the new measures announced today in the framework of a three-year programme agreed with the European Commission, the ECB and the IMF, which is also announcing its staff-level agreement with Greece on a standby arrangement. The main elements of policy conditionality, as endorsed today, will be enshrined in a Council Decision under Articles 126 and 136 TFEU to be formally adopted in the coming days and further detailed in a Memorandum of Understanding, to be concluded between the Greek authorities and the Commission on behalf of euro area Member States.


Statement by European Council President Van Rompuy following the Eurogroup agreement on Greece

"I welcome the agreement reached by the finance ministers of the Eurogroup on the adjustment programme that was negotiated by the Commission, the ECB and the IMF with the Greek government, as well as on the financial support to Greece that will be necessary to ensure the financial stability of the Euro area.

I am convinced that this sound and ambitious programme will enable Greece to put right its economic and financial situation as well as its competitiveness.

On the basis of this evening's agreement, a number of parliamentary procedures must be followed at national level in the next few days.

On this basis, I will convene the heads of state and government of the Euro area for a meeting on the evening of 7 May in order to conclude the whole process and to draw the first conclusions of this crisis for governance of the Euro area."

Statement of European Commission President Barroso on Greece

"I welcome the agreement in Athens with the Greek authorities of a multi-annual programme of fiscal consolidation and structural reform, jointly prepared by the European Commission together with the European Central Bank and the International Monetary Fund.
The Greek government, under the determined leadership of Prime Minister Papandreou, has committed to a difficult but necessary reform process to put the Greek economy on a sustainable path and restore confidence. The Commission considers that this agreed set of measures constitutes a solid and credible package.
The Commission considers that the conditions for responding positively to the request by the Greek Government are met and recommends that the coordinated European mechanism for assistance to Greece be activated, on the basis of the agreed multi-annual adjustment programme.
This assistance will be decisive to help Greece bring its economy back on track and preserve the stability of the Euro area.
The assistance, and the basis on which it is set to be provided, shows the joint determination of the members of the Euro area and our institutions, to act in a spirit of solidarity and responsibility".

ENDS

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