Eurozone crisis: Greece urged to ‘sell’ austerity bill to public

Published on Monday 13 February 2012 14:21

The Greek government has been urged to end a “spiral of unsustainable finances” and “sell” its austerity bill to the public.

The Greek government backed new measures, demanded by Brussels, late last night in return for a second bail-out worth £110bn.

EU Economics Commissioner Olli Rehn welcomed the vote.

But now, he said, it had to be implemented - and he insisted rioters who wreaked havoc on the streets of Athens in response to more cutbacks did not represent the “vast majority” of Greek citizens.

Eurozone ministers will meet later this week to decide whether Greece has done enough to qualify for the EU-IMF bail-out Athens desperately needs to avoid bankruptcy in mid-March.

Mr Rehn, speaking in Brussels, stopped short of confirming that the bail-out was now a certainty, pointing out that other conditions had to be met by Greece in addition to parliamentary backing for a tougher austerity package.

“Yesterday’s vote was a ‘crucial step’ towards adoption of the (bail-out) programme,” said Mr Rehn.

“I am confident that the other conditions, including the identification of concrete measures of 325 million euro (£270 million) will be completed by the next meeting of the eurogroup, which will then decide on the adoption of the programme.”

The vote had been “an expression of the determination prevailing in the country to put an end to the spiral of unsustainable public finances and to the loss of competitiveness”.

Mr Rehn went on: “In the last weeks, there have been tensions both in Greece and within its partners. The correction of the serious imbalances affecting the Greek economy, and the restoration of the conditions for growth and jobs, are a long-term endeavour.”

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