THE HAGUE (MNI) – Greece and its private sector creditors could
conclude debt restructuring talks by the end of this week, EU Economics
and Monetary Affairs Commissioner Olli Rehn said on Thursday.
With a E14.5 billion bond redemption looming in March that it
cannot afford to pay, Athens has little time left to conclude
restructuring talks with international bond holders and parallel
negotiations on a second aid package with Eurozone governments and the
International Monetary Fund.
Once finalized, both the restructuring and the second package need
to be approved by Eurozone finance ministers. Earlier in the day, a
Commission spokesman said an eventual meeting of the finance ministers
next week had yet to be confirmed.
Greece needs to “make decisive progress on reforms,” Rehn told a
conference here. “The focus must be on both continuing with fiscal
consolidation and on speeding up structural reforms that can boost
growth and create jobs.”
The EU “cannot afford to tolerate a breach of jointly agreed rules
by anyone anymore,” he warned.
Rehn emphasized the need for EU countries to embrace deep
structural reforms to boost economic growth, alongside fiscal
consolidation.
He reiterated a recommendation from the Commission that governments
should consider shifting taxation away from labour towards consumption,
property and pollution.
–Brussels newsroom: +324-9522-8374; pkoh@marketnews.com
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