Rehn: EU Might Refuse to Pay Greek Bailout

Bulgaria in EU | May 29, 2011, Sunday // 19:36|  views

EU Commissioner for Economic and Monetary Affairs Olli Rehn. Photo by EPA/BGNES

The European Union might desist from paying to Greece the next installment of its bailout should the country fail to give guarantees it is able to pay back its debts, stated EU Finance Commissioner Olli Rehn.

Speaking for the Spiegel Sunday, Rehn joined warnings from the IMF voiced earlier over the week that it might desist from continuing the crediting over fears Greece might default on its debt.

"We Europeans are posing the same conditions as the IMF and are expecting grounds to believe that Greece is taking measures to service its debt," stated the EU Financial Affairs Commissioner.

He said that everything depends on the joint decision by the IMF, European Commission and European Central Bank, and characterized the situation as "very grave."

An audit report from the three institutions is expected to show that Greece has not fulfilled any of the fiscal policy requirements for receiving its bailout.

Earlier over the week Eurogroup chair Jean-Claude Juncker also cast doubts on the execution of the third and final installment of the EUR 110 B Greek bailout.

On his part, Greek Finance Minister George Papakonstantinou said his country is confident it will receive the last installment of the loan.

In the meanwhile, large-scale protests were staged Sunday in Athens and elsewhere across Greece over budget cuts and imminent privatization plans.

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Tags: greece, IMF, European Commission, European Central Bank, Olli Rehn, budget cuts, privatization, bailout, Jean-Claude Juncker


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