will end up in default if the national parliament does not approve the program of fiscal austerity introduced by the government, said Olli Rehn the European Commissioner for Economic and Monetary Affairs onTuesday.
“The only way to avoid a default is the immediate support of the new economic program by the parliament,” he said in a statement. “It must be approved for the next tranche of financial assistance is paid to the country.”
“To those who speculate on other options, I say clearly, there is no plan B to avoid a default,” said the senior European official.
The proposed fiscal discipline, to be voted on Wednesday and Thursday at the Greek Parliament, provides a significant cost reduction (28 billion euros) and increase of taxes and duties essential to the continuation of European financial aid. Parliamentary debates on the project take place against a backdrop of major anti-government demonstrations.