EU urges Greece to reaffirm reform commitment

November 8th, 2011 - 1:33 pm ICT by IANS  

Brussels, Nov 8 (IANS/RIA Novosti) Greece could receive a blocked bailout instalment, the sixth tranche worth 8 billion euros ($11 billion), if the nation’s incoming government reaffirms its commitment on EU-proposed austerity programme, said Olli Rehn, the EU economy commissioner.

“We will work with the new government only if it makes clear and written commitments,” Rehn told journalists Monday, adding that the tranche could be issued in November.

Greece’s two major political parties — the ruling center-left PASOK and center-right opposition New Democracy — have announced that early elections are scheduled for Feb 19, 2012. A coalition government will rule the country until the election. Prime Minister George Papandreou agreed to resign.

The sixth tranche was previously approved by the Eurogroup but frozen after Papandreou proposed holding a referendum on the new bailout package. A popular vote was likely to frustrate all agreements with creditors. He later had to give up the initiative.

Without loans from the EU and IMF, which have been frozen over political and economic uncertainty, Greece may default on its 360-billion-euro ($495-billion) debt in the coming weeks.

–IANS/RIA Novosti
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