Finance ministers hail imminent Irish exit from bailout as proof that austerity works
Eurozone finance ministers tonight (9 December) urged the Greek government to do more to reform its economy, pushing back the date when Greece will receive its next tranche of loans.
“More progress is needed”, said Jeroen Dijsselbloem, the Dutch finance minister who currently chairs the Eurogroup of finance ministers, adding that a final decision on releasing the current tranche of aid is expected in January.
This means that the discussions between the Greek government and its international creditors will be ongoing as Greece assumes the rotating presidency of the European Union’s Council of Ministers.
Greece received bailouts in May 2010 and March 2012 worth a total of €246 billion, though on the condition that it reformed its economy to regain competitiveness.
Greece’s international creditors – the European Commission, the European Central Bank and the International Monetary Fund, also known as the troika – make the release of each portion of the funds conditional on the country having implemented agreed reforms.
Relations between the troika and the Greek government have become fraught in recent months over disagreements over Greece’s implementation of the reforms. For example, the troika argues that Greece needs to restructure its defence industry.
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Troika officials also dispute the Greek government’s budgetary forecast for 2014, arguing that it overestimates government revenues.
The Greek parliament on Saturday adopted a budget plan for 2014, though it has yet to gain the approval of the troika.
The Greek government has insisted in recent weeks that all such discussions would be concluded by the end of 2013.
But only a reduced team of officials from the troika will begin work in Athens on Wednesday.
The full troika negotiating team will return to Greece in early January, according to Olli Rehn, the European commissioner for economic and monetary affairs.
Dijsselbloem recognised that Greece faced a “difficult” political and social situation, which would not be helped by the government implementing more austerity measures.
Ireland
Eurozone finance ministers tonight (9 December) wholeheartedly backed the Irish government’s implementation of the terms of the €67.5 billion bailout given to the country in 2010.
Ireland is expected to exit the bailout programme on 15 December.
By endorsing the Troika’s twelfth and final review of Ireland’s austerity programme, they opened the way for a final disbursement of €800 million of EU funds.
“We congratulated once again the Irish authorities for the steadfast implementation of the programme that is allowing Ireland to return to a path of balanced growth and job creation and to stand on its own feet again,” the Eurogroup said in a statement.
“The imminent completion of the Irish programme is a proof that our strategy is now
delivering results.”