Wednesday

31st Aug 2016

Third Greek bailout to be worth €10-20bn

  • Schaeuble (c) with Jeroen Dijsselbloem (r), who chairs eurozone finance ministers' meetings (Photo: consilium.europa.eu)

Greece's third bailout is in the making, with a German finance ministry paper leaked to Der Spiegel putting the price tag at €10-20 billion.

In a separate interview with Wirtschaftswoche magazine out on Monday (3 February), German finance minister Wolfgang Schaeuble also said there will be a new Greek package, but noted it will be "far smaller" than the two previous ones, which totalled €240 billion in loans.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

Talk about a third bailout resumed last week at a finance ministers' meeting, after the troika of international lenders (the European Commission, European Central Bank and International Monetary Fund) identified a shortfall of €15 billion in Greece's funding once the current bailout ends this year.

But, according to the leaked German paper, Athens will have to speed up its reforms, as fewer than half of the agreed measures have been implemented so far.

A second debt restructuring deal, as demanded by the International Monetary Fund, is still not part of the German plan - as it would hit eurozone governments, notably Germany, whose banks now hold most of Greek debt.

The Greek government has been praised for reforms, which reduced Athen’s budget deficit.

Economic growth is also expected to return this year. But the country's debt - at 176 percent of GDP - is still far too high for its economy to bear.

With 28 percent of its workforce out of a job and 60 percent of young people unemployed after six years of recession, any new austerity measures risk worsening the social situation in Greece.

The government voted a budget for this year without the troika's approval which contains a €5 billion funding gap for the second half of the year.

The troika is expected to return to Athens in the coming weeks to find a compromise solution which will allow further disbursements from the current bailout.

Liberalising the labour market and the pharmaceutical market are among the most controversial measures still pending.

Meanwhile, a May deadline is looming. At this point Greece will have to repay government bonds worth €11 billion.

Stakeholders' Highlights

  1. EBECBright Engineering Students Designed the Future, Today at the BEST Competition
  2. Access NowInternet wins! Net Neutrality Victory in EU
  3. EuridThe 2016 .eu Web Awards is a Chance to Make Dreams Come True so Vote Today !
  4. Nordic CouncilNordic-Baltic Co-operation Vital in Turbulent Times
  5. GoogleBrussels: Home of Beer, Fries, Chocolate and Google’s Policy Team - follow @GoogleBrussels
  6. HuaweiSeeds for the Future Programme to Bring Students to China for ICT Training
  7. EFASpain is Not a Democratic State. EFA Expresses Solidarity to A. Otegi and EH Bildu
  8. UNICEFBoko Haram Violence in Lake Chad Region Leaves Children Displaced and Trapped
  9. HuaweiMaking Cities Smarter and Safer
  10. GoogleHow Google Makes Connections More Secure For Users
  11. EGBAThe EU Court of Justice Applies Proportionality in Assessing Gambling Laws
  12. World VisionThe EU and Member States Must Not Use Overseas Aid for Promoting EU Interests

Latest News

  1. Verheugen went off-script in VW cheat testimony
  2. Poland may remove constitutional judges
  3. Spain's Rajoy faces uphill battle to win MPs' support
  4. Russia and Turkey restart talks on EU gas pipeline
  5. MEPs call for reconciliation with Turkey
  6. Egypt blames EU-Turkey deal for refugee spike
  7. EU dithering aggravated refugee crisis, Merkel says
  8. Verheugen did not think VW cheating was morally possible