04 September 2012

Kathimerini: French nod on extension - Hollande says Athens could have two more years as Schäuble keeps heat on

French President François Hollande said that a Greek request for a two-year extension to its fiscal adjustment period could be granted, while German Finance Minister Wolfgang Schäuble noted that the priority was for Greece to implement promised reforms.

In a welcome lift for Greece, Hollande repeated an earlier-stated conviction that the two-year extension sought by Athens for the implementation of austerity measures could be granted as long as this does not oblige eurozone countries to shell out more loans.

In a joint press conference with Italian Prime Minister Mario Monti in Rome, Hollande said the green light for an extension would depend on a positive report. “Then, without giving any more money, we can reimplement the programme and keep Greece in the eurozone”, he said.

The mood in Berlin was more sceptical. Stournaras set out Greece’s positions to Schäuble, presenting the government’s draft proposal for €11.5 billion in cuts for 2013 and 2014. “Most important is that Greece fully implement its obligations - Finance Minister Schäuble pointed this out to his colleague once again”, said the German Finance Ministry, adding that a report by Greece’s “troika” of foreign lenders -- the European Commission, European Central Bank and International Monetary Fund -- was due in October. Stournaras and Schäuble reportedly discussed Greek efforts to hammer out a new austerity package, the impact of an ever-deepening recession and the request for a two-year extension.

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© Kathimerini