Saturday

28th May 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.

Finance ministers baulk at tax-avoidance rules

Member states will discuss again in June a proposed directive to outlaw practices used by large companies to avoid paying taxes. Meanwhile, the European Parliament makes progress on its probe of Panama Papers.

News in Brief

  1. Syrian refugees sue Denmark over immigration law
  2. Ukraine bans Gorbachev for backing Crimea's seizure
  3. Dozens dead in two shipwrecks outside Libya
  4. Slovak PM says his country is no place for Muslims
  5. Juncker's spin-doctor warns of populist 'horror'
  6. EU urges Hungary to end discrimination of Roma children
  7. Majority of voters think UK will stay in EU
  8. Leading MEP says Greek bailout will not work

Stakeholders' Highlights

  1. ACCAEducation and Training 2020 - Giving Young People the Workplace Skills They Need
  2. EPSUTrade Unions Back New Undeclared Work Platform
  3. European Healthy Lifestyle AllianceCould targeting children’s fitness boost academic performance?
  4. World VisionDeclares the World Humanitarian Summit a Positive Step in a Longer Journey to Ending Need
  5. EJCPresident Dr. Moshe Kantor on Brexit and the Jewish Question
  6. Swedish EnterprisesNew rules for posted workers - Better Protection or the End of Posting ?
  7. World VisionWhy The EU Needs to Put Children at the Centre of Emergencies - In Their Words
  8. ACCASustainability Reporting in Danger of Losing Its Momentum Says ACCA and CDSB
  9. Dialogue PlatformDiversity as Heritage of Humanity! Join the “Colors of the World“ Show at the EP
  10. Centre Maurits CoppietersNew Responses to the Basque Peace Process? MEP Juaristi on Stateless Challenges Conference
  11. European Healthy Lifestyle AllianceImproving Cardiovascular Health Begins by Closing the Gap in Sex Disparities
  12. IPHRBrussels Talks to Take Stock of Human Rights in Turkmenistan