Greece must now deliver on austerity plan- fin min
ATHENS, July 12 | Tue Jul 12, 2011 8:23am EDT
ATHENS, July 12 (Reuters) - Greeks need to unite behind an austerity plan and deliver results to secure a stronger bargaining position on the world financial stage, the
finance minister said on Tuesday after attending a euro zone meeting.
"We must implement the programme in a climate of national unity and social cohesion because this is a prerequisite for a stronger bargaining position," Finance Minister Evangelos Venizelos said, underlining his calls for consensus in a statement issued by the ministry after the talks in Brussels.
Euro zone finance ministers acknowledged for the first time at the meeting that some form of default may be needed to cut Greece's debts. The lack of concrete action and a lukewarm response to the outcome from the IMF piled market pressure on
Italy and Spain.
Athens wants a second bailout package to take it through to mid-2014 as it faces a funding gap next year under its current EU/IMF rescue scheme. It is highly unlikely to be able to return to bond
markets in 2012.
"The invitation to the political opposition to negotiate together the new programme and its details is still valid. Any consensus in
Greece, even the smallest, strengthens our position abroad," he said.
The conservative opposition which voted against the bailout
deal last year has been deeply critical of the economic adjustment plan Athens agreed with the EU and the IMF, saying the policy mix is wrong, taxing the economy into a tail spin.
"The eurogroup sent a clear message, that it is ready to take all needed measures to ensure financial stability in the
euro zone and this includes Greece. Of course, we must do our own work," Venizelos said