Eurogroup to convene, but only if...
Eurogroup President Jean-Claude Juncker: 'Greece must fulfil two further conditions'
The Eurogroup is supposed to convene on the evening of 15 February via teleconference, with only one item on its agenda - the situation in Greece.
Luxembourg Prime Minister and Eurogroup President Jean-Claude Juncker has said that Greece, following the largely positive vote in Parliament (199/300) on the new austerity package on 12 February, must still fulfil another two terms being insisted on by the Eurozone’s 17 finance ministers, namely the written reassurances from political leaders that the austerity measures will be applied after the next election and that further savings of €325 million have to be put in place in the 2012 budget, probably by cutting more off pensions.
In short, the Eurogroup will be convened via teleconference only if Greece follows these further two condition.
It should be remembered that Greece is set to receive from its Eurogroup and IMF peers a second aid package to avoid bankruptcy, which includes a 50% ‘haircut’ on the privately held debt and soft loans of €130 billion to cover the country's financial needs until 2015.
For these 'goodies' to be released, however, the Eurozone and IMF have asked Athens to apply further highly unpopular austerity and structural measures.
The Eurogroup and IMF have set three conditions for Greece – first, that the Greek parliament must vote in favour of the new austerity plan, a step that was taken on 12 February at great cost to the city of Athens, where 17 neo-classical buildings were set ablaze by hooded youths and 170 shops were looted.
The remaining two terms are not yet fulfilled, but the Greek government has said that it will try to do so by noon on 15 February. Even if Athens fulfils all three terms as indicated, the Eurogroup will still only be convening via teleconference, which means that the Council cannot make a formal decision.
Instead, Juncker has said that the regular meeting of the Eurogroup, all 17 ministers present in person, is due to take place on 20 February.
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