Eurogroup to Discuss New Loan Scheme for Greece

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Eurogroup to Discuss New Loan Scheme for Greece

A cabinet meeting held on February 18 approved an extra package of austerity measures worth €325 million.

Prime Minister Lucas Papademos expressed regret that cuts in pensions had to be made, noting however, that these only affect the part of the pension above the threshold of €1,300 per month. He also ruled out the prospect of assigning external commissioners at each ministry and noted that "we all agree that the immediate support of economic activity is a priority of the government's economic policy."

An urgent draft bill on the cuts to pensions and the minimum wage will be tabled today in Parliament, along with a second urgent bill on issues concerning health care, pharmaceuticals and the restructuring and merger of supplementary pension funds.

The PM, together with Finance Minister Evangelos Venizelos, have already flown to Brussels for a Eurogroup meeting scheduled for today, where European Finance Ministers are expected to discuss and approve a new loan agreement for Greece. The PM is also due to meet with representatives of the Institute of International Finance (IIF) concerning a debt restructuring scheme (PSI) that could save Greece € 100 billion.

In a teleconference held on February 17, German Chancellor Merkel and Italian Prime Minister Monti, conveyed to Papademos a message of optimism concerning the finalization of the bailout deal.

Ministry of Finance: Venizelos' statement about today's Eurogroup meeting

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