Dijsselbloem: We can’t unstitch half the program!

Eurogroup Chief J. Dijsselbloem says that the reforms list is the first step towards the new Greek government’s collaboration with the EU

Eurogroup president Jeroen Dijsselbloem told the European Parliament’s ECON committee on Monday that Greece has sent a reforms list on time, contrary press reports claiming the opposite.

“Greek authorities said they would send their proposals by Monday and I received these yesterday in my e-mail,” Dijsselbloem said in response to a question by a representative of the European Popular Party. He said national parliaments would need to vote on the agreement reached on Friday and that the Greek government would need to implement them by the end of April at the latest.

“Only the materialization of the measures would allow for the funding of the final installments from the central banks,” he said. Earlier, analyzing the tentative agreement that had been reached at the Eurogroup meeting on Friday, he said Greece needs to agree to the goals of the program, which are already in force.

The Greek side committed itself to a series of commitments so as to not abolish the measures that have already been taken, to avoid unilateral actions that would endanger fiscal stability, to honor monetary pledges made to creditors, to secure fiscal primary surpluses for the viability of the Greek debt as per the decisions of the Eurogroup meeting in November 2012.

Dijsselbloem continuously underlined that Greek authorities need to collaborate with European heads so that there is greater flexibility. He said measures can be replaced with others in collaboration with institutions. He said that hte  new Greke government has committeed to charter deep measures. The reforms Greece needs to make have been submitted and now these need to be evaluated from European insitutions. He pointed to this as a start.

According to Dijsselbloem, the Greek government is very serious about reforms and has a vision for Greece, and that this is the reason why there is the modification of the current agreement. The Eurogroup chief pointed to Greece’s interest in securing stability and pointed to the fact that the program always had room for flexibility. “We always negotiated on changes with the government and measures. There needs to be collaboration,” he said.

Nonetheless, he said that despite the flexibility, half the program cannot be unstitched.  He said that the reforms list is the first step to collaboration with Greece.

“We have to design a program which helps Greece, which makes Greece – both the private sector and public sector stronger – in the time we have that is limited at the moment,” he said. He said that Greece still needs to be kept on track while the EU is working to reorganizing the tax system.

He added that the Grexit is not a matter of discussion, noting that a great deal of work and capital has already been invested in keeping the eurozone in tact.

To watch the ECON meeting live, CLICK HERE