European Union finance ministers further pressured Greece and its private-sector creditors to ensure a proposed deal to restructure Greece's private-sector debt will be enough to put the country back on a firm fiscal footing.
The International Monetary Fund and wealthier eurozone countries want a low average interest rate on new bonds to be issued as part of the restructuring, in order to ensure Athens can pay its debts and avoid extra financing. EU finance ministers urged Greece to implement tough austerity and structural overhauls and provide more written assurances to its partners that it would meet its promises before a second bailout can be implemented.
"We need clear commitments from all the political forces in Greece so that there is clear backing for the new programme. That is a necessary precondition for a new Greek programme to succeed", said Olli Rehn, the European commissioner in charge of economic affairs.
German Finance Minister, Wolfgang Schäuble, said Greece must commit to carrying out the pledges for overhauls the country has made, no matter who wins elections expected to take place in April. Lucas Papademos was appointed to lead an interim technocrat government late last year to secure new bailout funding for the country.
In Brussels, several EU ministers indicated they had lost faith in Greece's ability or will to implement the overhauls. Austrian Finance Minister, Maria Fekter, said she is "not pleased" with progress. "We're sending a very direct message to Greece that the community expects more, also in terms of structural reform."
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© Wall Street Journal
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