–EU’s Rehn: Greece Had Shown It’s Serious About Reform

FRANKFURT (MNI) – German Finance Minister Wolfgang Schaeuble said
the Eurogroup has made progress on Greece heading into Tuesday evening’s
meeting, but stressed there was still work to do in the hours ahead.

Speaking to reporters ahead of the meeting in Brussels, Schaeuble
reiterated his position that the Eurogroup will have to find a solution
within Greece’s “existing program” of EU aid to close the renewed fiscal
gap that has emerged in Greece’s budget.

“We must find a way in the framework of the existing program for
Greece … to see how we draw the consequences of the worsening of the
economic situation” in Greece and also in Europe.

“We are working constantly, and so we have also made progress, but
we have not come so far that we can announce the results of today’s
meeting – otherwise we would not need a meeting,” Schaeuble said.

He added: “I am always optimistic … but I can’t promise anything.
There is still work to do.”

European Economic and Monetary Affairs Commissioner Olli Rehn, also
speaking to reporters, said Greece had shown it was “serious about
reforms” both on fiscal consolidation and structural reforms. He
confirmed that available measures to reduce Greece’s debt burden would
be discussed tonight.

“I trust that we will have the results tonight on the basis of the
troika proposal,” he said, referring to the report by the so-called
troika of the International Monetary Fund, European Commission and
European Central Bank.

“Now it is essential that we will be able to clear the air of
uncertainty … hanging over Greece” and over the Eurozone, Rehn said.

Schaeuble insisted there was “no argument” between the Eurogroup
and the IMF but acknowledged the two sides would have to find a “common
solution” in the hours ahead.

The IMF has rejected delaying by two years to 2022 the target for
Greece to return to debt sustainability, and has instead called for an
official sector haircut to allow Greece to keep its 2020 target.

Ireland’s finance minister also told reporters that a definitive
outcome Tuesday evening isn’t certain. “I’m more hopeful than I was last
week. But there’s no certainty that matters [will be resolved],” Irish
Finance Minister Michael Noonan said. “There’s a lot of issues
outstanding.”

Austrian Finance Minister Maria Fekter said a “positive report” at
the meeting from the troika could clear the way for the Eurozone to
approve the next tranche of aid under Greece’s existing program.

Fekter also repeated her opposition to giving Greece “more money”
to close its fiscal gap, though she said Austria would be prepared to
lower Greece’s financing costs. Fekter acknowledged this was easier for
Austria – which has lower financing costs itself – than for other
countries

— Frankfurt bureau: +49 69 720 142; email: frankfurt@mni-news.com —

[TOPICS: M$X$$$,M$G$$$,MGX$$$,MT$$$$,M$$CR$,M$Y$$$]