BRUSSELS (MNI) – European Commission President Jose Manuel Barroso
and European Council President Herman Van Rompuy, the European Union’s
two top officials, on Tuesday issued the following statement on the
situation in Greece:
“At the summit of 27 October, the Heads of State or Government of
the Eurozone agreed on a comprehensive package that included
strengthening the capital of European banks, significant optimisation of
the resources of the EFSF and reinforcement of Eurozone governance as
well as coordination and monitoring in economic and budgetary matters.
We are working on the implementation of those decisions, which are more
necessary than ever, without delay.
During this summit, the Heads of State or Government of the
Eurozone agreed on the establishment of a new program for Greece of E100
billion funded by the EU and the IMF. An agreement was reached with the
private sector to bring Greek debt on to a sustainable path, which
provides for a discount of 50% of the debt held by private creditors, or
a write-off in the order of E100 billion. The Member States of the
Eurozone are willing to contribute to all the measures relating to the
private sector to the tune of E30 billion. This PSI, together with an
ambitious reform programme, would be instrumental to reach a debt level
of 120% by 2020. This substantive reduction would alleviate the burden
on the Greek budget and would therefore support growth and jobs’
policies
We take note of the intention of the Greek authorities to hold a
referendum. We are convinced that this agreement is the best for Greece.
We fully trust that Greece will honour the commitments undertaken in
relation to the euro area and the international community.
The Presidents of the European Council and Commission have had a
telephone conversation with Prime Minister Papandreou. The Presidents
are in contact with members of the Eurozone and will continue to be in
the margins of the G20 meeting in Cannes.”
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