At the conclusion of Monday’s meeting of the eurozone’s 19 finance ministers, Dijsselbloem said Greece should be able to get a further 1 billion at the end of the month.
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The dozens of reforms touching on all aspects of Greece’s economy were to be announced in parliament by newly re-elected premier Alexis Tsipras later on Monday.
Pierre Moscovici, the European Commission’s top economy official, said he’s encouraged by Tsipras’ recent pledges that his government will meet its promises.
Failing to hold up its end of that bailout deal, which imposed 6.4 billion euros worth of austerity measures this year and next, of which 4.34 billion will fall in 2016, would push the indebted country back to the brink of default and an exit from the eurozone. “A lot of work has to be done, a number of reforms still have to be implemented and new reforms have to be designed”, said Jeroen Dijsselbloem, the head of the Eurogroup of finance ministers.
Doing so will help the country “regain trust in and out of Greece“, he said.
Greece has relied on bailout funds from its eurozone partners and the worldwide Monetary Fund since the spring of 2010. “It’s in the Greek interest to deliver as quickly as possible so we can continue with the process of bank recapitalization and go into the debate about debt restructuring and debt relief”.
As part of the bailout, his government has to enact more onerous spending cuts and tax hikes.
He said the key word for Greece is “implementation”.
Dijsselbloem said the Greek government must maintain its “strong reform momentum”.
A positive first review is crucial for Greece as it will trigger the next phase in the country’s rescue – cash injections for the crippled banks and discussions on how to lighten Greece’s debt load. Initially that was expected in October. “Difficult decisions lie ahead”, premier Tsipras warned lawmakers from his Syriza party on Saturday, launching the crucial week that includes a confidence vote in Greek parliament on Wednesday.
Because of Greece’s general election last month that saw Tsipras’ left-wing Syriza retain power in coalition with the Independent Greeks, there are a few concerns in the markets that Greece is behind schedule and that the first payments due from the bailout may be delayed.
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“There were just elections, the government has just been formed, it’s too early to talk about being late”, said Wolfgang Schaeuble, Germany’s influential finance minister.
