Rehn: Greek Guarantees Have Been Prepared for Some Time
published today 05:41 PM, updated today 06:25 PM
YLE sources report that the biggest European countries have decided already last Friday at a secret meeting in Luxembourg to demand guarantees from Greece in return for additional funding. European Economic and Monetary Affairs Commissioner Olli Rehn, who was present at the meeting, confirms that arrangements for guarantees have been prepared for some time.
Additionally, a private company will be established for the sale of Greek property, along similar lines to one created for the sale of state property of East Germany upon the reunification on of Germany, YLE source says.
The measures are aimed at ensuring that newly troubled Greece does not surprise the other EU states this time. Solutions for the growing and deepening problems have been sought behind the scenes for a long time already.
“Germany, France, Italy, Spain, the Eurogroup chairman and the Commission have discussed the upcoming need for additional funding with Greece last Friday in secret in Luxembourg, and that was the meeting’s aim,” the source told YLE.
Rehn confirmed that the guarantee arrangements have been in the works for some time.
“Possible guarantee arrangements, on the part of Greece among others, have been prepared, and I assume that the work will proceed from here in that direction,” Rehn said.
Discontent across Europe
So Thursday’s statements of German Finance Minister Wolfgang Schauble, who demanded guarantees on additional loans to Greece, were neither baseless nor arising out of conditions set by Finland’s Social Democratic Party on further bailouts.
Rehn hopes that Europe will arrive at greater mutual understanding. Voices calling against continued support for crisis-stricken countries have sounded in several countries.
“I think that in many countries where these decisions have been difficult there is a desire to make sure that the loans will be repaid. For this reason, in many EU states there has been debate on guarantee arrangements, for example in regard to Greece. The Commission, for its part, has made such preparations and I am of the opinion that we need to continue in the same direction,” Rehn said.
Guarantees from state-owned companies?
According to YLE information, Greek guarantees could be gained from state-owned companies, such as telecommunications companies, real estate businesses and land property. The International Monetary Fund estimates that Greek state property is worth over 280 billion euros.
Rehn did not confirm this list of guarantees.
“This task is currently underway. It’s too early to talk about the details,” Rehn said.
Additional funding for Greece would be withdrawn from the temporary bailout fund. The approval for the fund, as well as for the permanent bailout fund, has been planned for Monday’s meeting of EU finance ministers. However, the arising crisis and the guarantee arrangements will postpone the decision until June.
Inspectors from the EU, the IMF and the European Central Bank will only conclude their work in regard to Greece next week. The bad news is that the Greek government deficit this year is worse than expected, reaching nearly 10 percent of the GDP.
(yle.fi)
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