European Commission: Speaking points of Commissioner Moscovici at the joint College read-out with Vice-President Katainen

22 July 2015

Developments regarding Greece and communication on the role of National Promotional banks in supporting the Investment Plan for Europe.

Regarding Greece now, here is an overview of where we stand.

In the past ten days, all parties have delivered on their commitments.

We are making swift progress toward effective implementation of the euro summit agreement:


The European Commission was instrumental in designing a solution to ensure that Greece's urgent financing needs were met, via the EFSM bridge-financing. This was a question raised by President Juncker during the Eurozone Summit that had to be addressed in a very efficient manner.

Several options were on the table. However it was the view of the Commission that the EFSM was the best of them.

The EFSM is ultimately backed by the EU budget and is a mechanism for the 28 Member States. Intensive contacts with Member States allowed us to identify and address concerns regarding the use of the mechanism especially for countries outside the Eurozone which expressed their legitimate concerns. All countries then took a constructive approach which helped us to reach an agreement.

In order to ensure that non-euro area Member States would not be liable for any potential losses arising from the loan, the euro area countries agreed to put in place a system of collateral for non-euro area Member States, designed to protect them. This system ensures that in all circumstances the non-euro area Member States are protected and cannot suffer any losses as of the EFSM loan to Greece.

The Commission has been invited to make this system permanent, in case of future use of the EFSM, because there is still some money left in the EFSM, around €6bn. This is why we have adopted this morning a revised Regulation of the EFSM, introducing these collateral guarantees as a principle. The Member States will have to discuss and agree on this in the days to come.


One last word on the next steps:

That is where we stand at the moment. After months of deadlock, we are now making swift progress on the implementation of the euro summit agreement.

Full speech

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