FRANKFURT (MNI) – It would be a big mistake for Greece if it failed
to honour the commitments it has made to secure financial assistance
from the EU and IMF, European Central Bank President Jean-Claude Trichet
warned on Thursday.
“It would be an enormous mistake for the people of Greece not to do
the adjustments that have been committed to with the international
community,” he said at the bank’s monthly press conference.
“It is absolutely obvious that it is in the interest of Greece and
the Greek people, in terms of growth and jobs in the medium term
perspective to do the necessary adjustments,” he added.
EU officials have stepped up the pressure on Greece to meet its
commitments, warning that Athens risked losing the next tranche of aid
should it fail to honour all the attached conditions.
Officials from the European Commission, International Monetary Fund
and the ECB, who must decide whether or not the country will receive its
next tranche of aid, unexpectedly left Athens last week, citing
uncompleted “technical work.”
However, it is an open secret that the meeting with senior Greek
government officials had been strained, particularly over Greece’s
insistence that a deeper-than-expected recession was the reason why it
would not meet its deficit target of 7.6% of GDP this year. The meeting
ended abruptly and amid disagreement.
Since then, the government has taken concrete action to kickstart
its stalled privatisation plan, transferring key assets flagged for sale
into a fund in preparation for disposing of them.
The inspectors from the ECB, IMF and Commission, known collectively
as the troika, are expected to return to Athens once the government
there is ready.
EU officials have suggested this could be next week.
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