ATHENS (MNI) – Eurogroup President Jean-Claude Juncker, speaking
over the weekend, offered assurances that there would not be conflicting
aid plans for Greece offered by the International Monetary Fund and the
Eurozone.
“There will be one joint Greece aid program with common conditions,
led by the European Commission, the ECB and the IMF,” Juncker told the
Greek financial website “Euro2day” on the sidelines of the informal
Ecofin meeting in Madrid.
“Under no circumstances will there be different terms imposed
separately by the Eurozone and the IMF,” Juncker said.
He went on to say that the letter sent Friday by Greek Finance
Minister George Papaconstantinou to the three parties was part of the
procedure in order to formally include the IMF in the negotiations.
“It’s mainly an issue for the Commission and less for the ECB and the
IMF to draw the basic lines of the program that Greece will follow in
case it officially submits a request” to activate the aid plan, Juncker
added.
Juncker welcomed the expertise of the IMF in cases like Greece. But
he said, “it is the first time the IMF is called on to help a Eurozone
country. The IMF had similar experiences with monetary union in Africa.
However it cannot be compared with the Eurozone. That is why certain
methodological problems have been created which will be solved among the
ECB, the Commission and the IMF.”
Asked what would happen were the IMF’s conditions to conflict with
the Maastricht Treaty, Juncker replied, “it is clear that as far as the
Eurozone is concerned, we will remain faithful to the treaty and the
Stability and Growth Pact. He added: “Under no circumstances will we
endanger the procedures of the European mechanism.”
However, Juncker said the discussions going on between the
Europeans and the IMF “are not as dramatic as they seem, and a solution
will be found.”
Asked whether the thought Greece would actually avail itself of the
proffered assistance, Juncker said, “that’s a decision for the Greek
government. We have no indication that Greece will submit a request.
Therefore I cannot speculate. If it happens, the ECB and the Commission
will present an assessment of the Greek situation which will be examined
by the Eurozone, and a unanimous decision will then be taken.”
He added, “my only concern is that the markets appear to think that
the Eurozone will not be there in case of a formal request. What I have
to say is that the Eurozone will undertake its responsibilities. We have
said it many times before. European money exists and will be used when
needed.”
Queried about Germany’s position with regard to aid for Greece,
Juncker underlined that “it is clear, as [German Chancellor] Ms.
[Angela] Merkel and [German Finance Minister] Mr. [Wolfgang] Schaeuble
told me, Germany will help Greece in case of need. They have the same
position as the rest.”
Regarding the interpretation of the term “ultima ratio” (or “last
resort”), which is contained in the Eurozone plan, Juncker said, “the
Greek government is the one that will have to interpret and assess what
the ultima ratio means for itself. If it decides it is in that phase,
then the Greek government will take the necessary steps and the
Commission and the Eurogroup will decide if Greece is in an ultima ratio
situation.”
Juncker said it was necessary, in order to get agreement among
Eurozone finance ministers, to require unanimous approval and give
countries the right of veto over whether to exercise the aid plan.
Juncker said the agreement to include an IMF contribution to Greece
in the plan was a “typical European compromise” quotes between those who
wanted a bigger involvement by the Fund and those that wanted no
involvement at all.
Asked whether Greece would be forced to undertake additional
austerity measures in 2010 in order to get the promised loans, Juncker
said, “the measures for 2010 are quite ambitious and they…show
credibility. During the discussions for the Greek package, the
possibility of new measures will be discussed. However, this is not
tomorrow’s problem. It’s for the whole duration of the procedure.”
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