Highlights

Commission Vice-President Olli Rehn and Eurogroup
President, Luxembourg's Prime Minister Jean-Claude
Juncker at the press conference on 12 March
© European Union, 2012

Eurozone finance ministers on 12 March 2012 gave the political go-ahead to the second programme to support Greece. The deal is expected to be formalised on Wednesday.

"As agreed, new official financing of 130 billion euros will be committed by the euro area and by the IMF for the period 2012-2014," said the President of the Eurogroup Jean-Claude Juncker.

"We look forward to a significant contribution from the IMF, to be decided later this week," he said.

The Eurogroup welcomed the high level of private-sector participation in Greece's debt exchange offer. According to forecasts by the Troika (European Commission, European Central Bank and International Monetary Fund), the successful bond swap operation ("private sector involvement") will allow the Greek debt-to-GDP ratio to be reduced to 117% by 2020 - an outcome that is better than expected, said Jean-Claude Juncker.

He explained: "We will put in place a strong partnership between Greece, the Troika and the Commission's Task Force in order to continuously monitor the fiscal developments in Greece and provide the necessary support for far-reaching structural reforms."

The fiscal situation in Spain

Ministers discussed the 2011 budget gap confirmed by Spain and the ensuing consolidation needs for 2012. They welcomed "the commitment of the Spanish government to meet the 2013 deadline for the correction of the excessive deficit, bringing the deficit below 3% of GDP".

On the subject of Spain's budget for 2012, the Eurogroup agreed that an additional frontloaded effort should be of the order of 0.5% of GDP.  

More information:
Terms of reference on Spain, 12 March 2012 (pdf)
Press conference videos 
Eurozone governance  
Eurogroup webpages  
Statement by the Eurogroup President, 9 March 2012 (pdf) 
Eurogroup Statement, 20 February 2012, on agreement on a second programme for Greece (pdf)