Correspondent's Choice

This story about conditions for financial aid to Greece was published by EurActiv on 26th April 2010.

Greece must agree to tough new austerity measures before it receives any financial aid from the European Union and failure to do so would endanger such support, German Finance Minister Wolfgang Schaeuble told a newspaper.

The debt-saddled euro-zone member has already announced billions of euros in austerity measures, including tax hikes and public sector wage cuts, but is talking with the EU and IMF about additional steps.

“The fact that neither the EU nor the German government have taken a decision [on providing aid] means that the response can be positive as well as negative,” Schaeuble told the Sunday edition of Bild newspaper.

“This depends entirely on whether Greece continues in the coming years with the strict savings course it has launched. I have made this clear to the Greek finance minister.”

Later on Saturday, German Foreign Minister Guido Westerwelle echoed Schaeuble’s call, urging Greece to come up with a budget consolidation plan that will persuade countries to pitch in.

“It has yet to be agreed that Greece will actually get assistance in Europe at all. We will not write a blank checque,” he said in an interview on ZDF television.

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