A press conference with the President of the Eurogroup Jeroen Dijsselbloem, the President of the European Council Donald Tusk and the President of the European Commission Jean-Claude Juncker was called shortly after the Sunday’s marathon summit concluded on Monday with a unanimous agreement.
Mr. Tusk stated that an “aGreekment” was finally reached on Monday, noting that the only objective was to make a deal and that strict conditions must be fulfilled. He noted that these conditions must be met in order for the ESM program to formally begin. The President of the European Council welcomed Greece’s ‘constructive position’ in the marathon talks, which helped restore trust.
The head of the European Commission Jean-Claude Juncker commented that the main discussion point was the fund that will support the Greek effort. Greek assets will be transferred to this fund in order to liquidated or privatized, with 50% of funds to derive to be used for investments in Greece, while the other 50% would go towards the payment of debts and recapitalization of the banks.
The Eurogroup chief Jeroen Dijsselbloem underlined that Greek authorities have to being passing legislation to implement the series of measures that were agreed in Brussels. Should these measures pass by Wednesday, then the firm negotiations over a new ESM bailout make take place. Mr. Dijsselbloem announced that a fund would be established in Athens where Greek assets will be transferred for privatization, which will contribute towards the recapitalization of Greek banks and addressing the national debt. About 25 billion euros will go towards the banks.
Merkel: «We must be patient»
Following the conclusion of the press conference, German Chancellor Angela Merkel commented that trust must be regained and that Greek authorities must pass the measures through Parliament in Athens, before the other Parliaments in Europe approve of the agreement for a new bailout.
Mrs. Merkel explained that the new program will be worth 82 to 86 billion euros and will last for three years. The plan includes the establishment of a fund where 50 billion euros worth of assets will be transferred for privatizations. She underlined that there are no plans for a ‘Grexit’ and highlighted the Greek willingness to remain within the Eurozone.
Hollande confirms debt re-profiling via extension of maturities
The French President Francois Hollande also commented on the agreement reached with Greek authorities in what he dubbed a “landmark summit”. Mr. Hollande argued that the objective was for Europe to rise up to circumstances and that now Greece must make further efforts. He praised Mr. Tsipras for his courageous choice and underlined that the Eurozone membership must provide stability and growth.
Mr. Hollande added that without growth the Greek public debt will never become sustainable and confirmed an eventual debt re-profiling by extending the maturities. Should the bailout be approved, Greece will receive 85 billion euros, the most ever given to a Eurozone member.
