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16 February 2012

WSJ: Optimism grows for Greek accord


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Jean-Claude Juncker expressed optimism that a long-awaited accord with Greece could be wrapped up soon, potentially clearing the way for a new bailout and debt restructuring.


Jean-Claude Juncker said there had been "substantial further progress" since Tuesday in talks between Greece and its so-called troika of international official lenders—the European Union, the International Monetary Fund and the European Central Bank.

After a teleconference among the ministers, Mr Juncker said the lenders had received assurances of support for the austerity programme that will accompany the deal from the two party leaders in Greece's ruling coalition—New Democracy leader, Antonis Samaras, and Socialist party chie,f George Papandreou—and said €325 million of additional budget cuts for this year had been identified, as the lenders required.

He said further moves were necessary before the agreement could be sealed—measures to make sure the agreed programme of economic overhauls was implemented and to ensure that servicing the debt would be a priority for Greece. An official from a eurozone government said the ministers were seeking "some sort of permanent presence for the troika" in Greece "with enough authority and manpower".

With those further steps, Mr Juncker said he was confident "all the necessary decisions" could occur when the finance ministers convene in Brussels on Monday. The call came after a day in which concerns mounted that delays in agreeing to the deal would jeopardise plans for an orderly restructuring of Greece's government debts to private creditors.

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© Wall Street Journal


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