Rehn: Greece Must Take Austerity for Own, EU Good

Greek finance minister Evangelos Venizelos (R) chats with the Monetary Affairs European Commissioner Olli Rehn at the start of a Euro Group finance ministers council, at the EU headquarters in Brussels, Belgium, 09 February 2012. EPA/BGNES

The austerity plan to be implemented in Greece is essential to safeguard financial stability in the country and the EU, stated EU Economic Affairs Commissioner Olli Rehn Tuesday.

"I can understand the pain and turmoil in Greece, but at the same time this is the framework that has been decided by the euro area member states together with the IMF, and we work on the basis of this framework," Rehn said.

The Greek Parliament passed the harsh austerity measures in the wee hours Monday, against the backdrop of violent popular protests that left Athens devastated.

However, EU Economic Affairs Commissioner Rehn argued that the measures were essential to avoid a bankruptcy of the Greek state.

"A disorderly default for Greece would devastate Greeks and harm Europe,"said Rehn.

He moreover stressed he remains optimistic: "I expect that we should soon be able to decide on a new second programme for Greece."

Eurozone ministers are expected to meet on Wednesday to finalize a second EUR 130 B bailout plan for Greece, in addition to a write down of 70% Greek debt held by the private sector.

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