BRUSSELS (MNI) – Greek Finance Minister George Papaconstantinou
refused to comment Tuesday on reports that Austria might withhold its
contribution to the country’s E110 billion aid deal.
“I will not comment on the specific comments,” Papaconstantinou
told reporters as he arrived for the meeting of Eurozone finance
ministers here.
Earlier Tuesday the Austrian government released a statement saying
it might withhold its next transfer of loans to Greece because the
country is not sticking to a plan agreed with its Eurozone partners and
the IMF.
Greece signed on to a E110 billion loan package earlier this year
and in return agreed to a strict austerity package which would see it
slash its budget deficit below the EU’s 3% limit by 2014.
“As you know, with Eurostat’s announcement on Monday, Eurostat
waves all reservations” about Greek data, the minister said. The EU
statistics agency revised up its estimate of Greece’s 2009 budget
deficit to 15.4% of GDP from 13.6%.
Papaconstantinou noted that this meant his government were
“starting from a higher point” in its consolidation plan.
But he said “Greece did the biggest consolidation effort in the
European Union” this year. It is on track to cut its budget deficit by
six percentage points.
Finance ministers from the 16 Eurozone countries are arriving for a
regular meeting with European Central Bank President Jean-Claude Trichet
and European Commissioner for Economic and Monetary Affairs Olli Rehn.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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