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In a government statement, the Federal Finance Minister explained the decisions taken by the Eurogroup on 26 November. He pointed out that it is no longer a question of only Greece, but of the future of the euro as a whole. "Nobody benefits more from Europe than we Germans, both economically and politically", he declared. "Without the euro our economic position would be dramatically weaker. When we work for a strong Europe, we are investing in our own future."
Delays lead to modifications to programme
Wolfgang Schäuble said that the elections in Greece had delayed the implementation of the programme. The overall economic situation has also deteriorated. "Greece will need another two years to meet its consolidation goals." This has made it necessary to modify the programme for Greece. "It is not a new third programme. The financial framework remains unchanged", stated Wolfgang Schäuble unequivocally.
The Eurogroup, the European Central Bank (ECB) and the International Monetary Fund (IMF) agreed on a package of measures on 26 November. The financing gap of €14 billion is to be closed by 2014, and Greece enabled to return to a point where its debt is once again sustainable.
The measures in detail
Disbursement in four instalments
The loan of €43.7 billion from the second aid package is to be disbursed to Greece in four instalments: €34.4 billion in December and the remaining sum in individual payments by March 2013.
Assistance also tied to reforms
The precondition for disbursement of the next instalments is that Greece continue step by step to realise the agreed consolidation and reform agenda. "In all measures we have advocated the principle of conditionality", underlined Wolfgang Schäuble. "The disbursement of each instalment is conditional on the troika giving a green light. We must not provide any false incentives that would encourage Greece to let up in its reform efforts", he said, with a view to the debate on cancelling some of the country’s debt.
Like the German Bundestag, the national parliaments of all eurozone states must approve the package of measures.