Juncker expects the sixth tranche of aid to Greece to be approved before December

Juncker expects the sixth tranche of aid to Greece to be approved before December

  • The finance ministers of the euro zone could agree to the disbursement in the meeting that they will keep on November 29.
  • Before the political parties of Greece must put in writing their willingness to undertake the cuts requested by the eurozone.
  • The president of the Eurogroup, Jean-Claude Juncker, has met with his Greek counterpart, Lucas Papademos, to talk about the crisis.
Reunión en Luxemburgo

The Greek Prime Minister, Lucás Papademos (d), poses with the president of the Eurogroup, Jean-Claude Juncker. EFE / CHRISTOPHE KARABA

The president of the Eurogroup, Jean-Claude Juncker, is "optimistic" about the execution of the sixth stage of aid of the first rescue to Greece.

Juncker believes that the Greek political forces will reach an agreement to put in writing their willingness to undertake the cuts requested by the eurozone, a step before the finance ministers of the euro zone agree on the disbursement at the meeting they will hold on November 29. . The also prime minister of Luxembourg, received on Tuesday his Greek counterpart , Lucas Papademos, to discuss the debt problems.

According to the Eurogroup president, "Prime Minister Papademos was not expected to have the letter" from the Greek parties today, although he said he was "sure" that the Greek authorities will deliver it before November 29. In a press conference after the meeting, both Juncker and Papademos agreed that it is necessary for the Hellenic Executive to continue on the path of austerity in order to clean up their accounts.

The Greek Prime Minister recalled that his Government, despite having a "provisional" character, has "strong support from the population." In this way, Papademos will call elections when he has put in place all the necessary policies, although he declined to put a precise date to the elections. The head of the Greek government met Monday in Brussels with the presidents of the European Council, Herman Van Rompuy, and the European Commission, José Manuel Durao Barroso, as well as with the European Commissioner for Economic Affairs, Olli Rehn.

Eurobonds, to debate

Juncker and Papadimos have also talked about the forgiveness of 50% of Greek debt in private hands that is part of the second rescue, which will amount to 130,000 million euros . Also, both leaders referred to the publication on Wednesday of an EC proposal to create European debt securities, better known as Eurobonds and called by the EU executive "stability bonds".

According to Juncker, there are "arguments in favor" of unifying the debt of the euro countries, but this will not mean "a short-term solution" to the problems that afflict the European periphery, since its implementation would be slow. In the same vein, the head of the Greek government expressed himself, for whom "Eurobonds could be a measure to correct" the problems , although they would not be available until after some time, possibly several years.

Juncker avoided positioning more concretely until the details of the Commission proposal are known, but added that he is aware that in Germany the idea of ​​Eurobonds "does not like spontaneously".

The role of the ECB

The German Chancellor, Angela Merkel, and several members of her government have publicly and repeatedly expressed their total opposition to the creation of these titles , which would increase the borrowing costs of her country and would, in her opinion, provide an incentive for countries do not put their finances in order.

Germany is also the main opponent to the European Central Bank carrying out programs of massive purchase of bonds of those countries victims of speculative attacks or of the lack of confidence of the markets , like those rescued Greece, Portugal and Ireland, or others, as Italy or Spain. "I think the president of the Eurogroup should not give public lessons on central bank management," Juncker responded when asked about his position on a possible entry of the ECB into the debt markets as a lender of last resort.

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