Eurozone leaders have agreed in principle to begin talks on a bailout programme for Greece which comes with strict conditions, but places the country on a path of growth and helps to regain trust, European Council President Donald Tusk said Monday.
Leaders of 19 euro area countries reached a unanimous agreement on an European Stability Mechanism programme for Greece early on Monday after intensive talks over the weekend in Brussels.
“We had only one objective: to reach an agreement. After 17 hours of negotiations, we have finally reached it. One can say that we have ‘agreekment’,” Tusk said in a press conference following the summit.
“Leaders have agreed in principle that they are ready to start negotiations on an ESM programme, which in other words means continued support for Greece.”
Tusk noted that Greece has to meet strict conditions under the new programme, which has to be approved by several national parliaments, including the Greek parliament. Once such approval is gained, negotiations can formally begin, he added.
“The decision gives Greece a chance to get back on track with the support of European partners. It also avoids the social, economic and political consequences that a negative outcome would have brought,” Tusk said.
“I welcome the progress and the constructive position of Greece that helps to bring back trust among euro zone partners.”
Further, Tusk said Eurozone finance ministers will work with the institutions to swiftly take forward the negotiations and will hold urgent discussions on providing bridge-financing to Greece.
The country’s banking system is severely stressed and are largely depedent on emergency support from the European Central Bank. Greece faces a EUR 3.46 billion payment to the central bank on July 20.
The material has been provided by InstaForex Company – www.instaforex.com