After seven hours of talks Eurozone finance ministers meeting in Luxembourg decided to delay a final decision on extending a further 12 billion-euro loan to Greece.
The ministers said Athens would first have to introduce further austerity measures to the tune of 28 bn euros’ worth of spending cuts and economic reforms.
Didier Reynders, Belgian Finance Minister, said:
“We await of course, a decision from the Greek parliament on the approval of the plan. Based on that…..the decision on the overall financing strategy can be taken and in that case the payment of the last instalment agreed as part of the first programme will be in mid-July. “
In addition, the president of the Eurogroup, Jean-Claude Juncker explained that ministers had committed themselves to a second bailout beyond last year’s 110 billion-euro rescue plan. The details are still to be worked out.
“We agreed on a voluntary roll-over by private investors, but this has really to be voluntary,” said Juncker.
Euronews reporter Margherita Sforza said “after a long and difficult night of negotiations the work resumes this morning while Brussels waits for Greece’s Prime Minister George Papandreou to introduce a new austerity plan.”