Greece to Lose Great Deal of Its Sovereignty - Juncker

President of the Eurogroup, Luxembourg`s Prime Minister Jean-Claude Juncker. Photo by EPA/BGNES

The sovereignty of Greece will be massively limited as a result of the EU bailout, according to Jean-Claude Juncker, chairman of the Eurogroup of Finance Ministers.

Speaking before Germany's Focus magazine, Juncker claimed that teams of privatisation experts from around Europe would now be heading to Athens to push through the state sell-offs, which are slated to raise EUR 50 B.

Juncker compared Greece's debt crisis situation to that of to the Treuhand agency, used by Germany to sell off 14,000 former East German firms between 1990 and 1994 – even though no profit was generated by the agency, huge job losses were not prevented and it ended up with a deficit.

Juncker's interview appeared just hours after Eurozone ministers agreed on the last installment of the Greek bailout, after which they need to put together a second package to help the country through 2014.

The new EUR 8.7 B aid payment to Greece aims at ensuring the country will not default on its sovereign bonds this month and clearing an essential hurdle that had spooked markets across the globe, The Financial Times pointed out Sunday.

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