Statement by the Eurogroup

Brussels, 2 May 2010

Statement by the Eurogroup

Eurogroup Ministers concur with the Commission and the ECB that market access for
Greece is not sufficient and that providing a loan is warranted to safeguard financial
stability in the euro area as a whole. Following a request by the Greek authorities, euro
area Ministers unanimously agreed today to activate stability support to Greece via
bilateral loans centrally pooled by the European Commission under the conditions set
out in their statement of 11 April. Parliamentary approval, needed in some Member
States prior to the release of the first tranche, is expected to follow swiftly.
The Eurogroup is confident that the ambitious fiscal adjustment and comprehensive
structural reforms under the Greek authorities' programme are appropriate to stabilise
the fiscal and economic situation and address the fiscal and structural challenges of the
Greek economy in a decisive manner. The programme is supported by strong
conditionality. It will thereby also help restore confidence and safeguard financial
stability in the euro area.
In the context of a three year joint programme with the IMF, the financial package
makes available € 110 billion to help Greece meet its financing needs, with euro area
Member States ready to contribute for their part € 80 billion, of which up to € 30
billion in the first year. The first disbursements will be made available before the
payment obligations of the Greek government fall due on 19 May.
Euro area financial support will be provided under strong policy conditionality, on the
basis of a programme which has been negotiated with the Greek authorities by the
Commission and the IMF, in liaison with the ECB. The programme has been approved
by the Greek Council of Ministers on 2 May and endorsed by the Eurogroup on the
basis of a Commission and ECB assessment.
In this context, the Eurogroup welcomes the efforts to date by the Greek Government
to resolutely address the fiscal imbalances as well as the new measures announced
today in the framework of a three-year programme agreed with the European
Commission, the ECB and the IMF, which is also announcing its staff-level
agreement with Greece on a standby arrangement.
The main elements of policy conditionality, as endorsed today, will be enshrined in a
Council Decision under Articles 126 and 136 TFEU to be formally adopted in the
coming days and further detailed in a Memorandum of Understanding, to be concluded
between the Greek authorities and the Commission on behalf of euro area Member
States.

http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/misc/114130.pdf