Economy World

Aid plan: EU calls for written guarantees to Greece

Athens will obtain the sixth tranche of eight billion euros if the new Greek government agrees in writing to respect the promises of budget savings and reforms, said the European Commissioner for Economic and monetary Olli Rehn on Tuesday.

“It is essential that the new government takes a clear commitment in writing to the EUIMF program and all the elements included in the second aid plan,” said Mr. Rehn at a point press. “I think the sixth tranche could be released during November, provided that there is this commitment clear and unequivocal.”

Last week, leaders of the euro area have threatened to exclude Greece from the European monetary union for non-compliance with decisions taken on October 26. European leaders had then found an agreement to set aside 100 billion euros of Greek debt in exchange for a broad program of austerity.

The announcement by the Greek Prime Minister George Papandreou of a referendum on the austerity plan provoked a shock wave in the Greek political class, as well as the embarrassment of European leaders. The idea of a plebiscite was subsequently abandoned.

Last Sunday, the two main Greek political parties have reached agreement on the resignation of Prime Minister Papandreou and the formation of a coalition government.

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