Financial support for Greece

The euro area Member States are activating the mechanism that will help Greece redress its economy. At a meeting on 2 May in Brussels, the finance ministers of the Eurogroup reached an agreement to launch the three-year financial support package to Greece. This joint programme with the IMF makes 110 billion euro available, with 80 billion euro coming from the euro area countries.

Georgios Papaconstantinou, Greek Minister for Finance,
Jean-Claude Juncker, Luxembourg
Prime Minister, President of the Eurogroup,
Olli Rehn, member of the European Commission
© European Union, 2010

In the first year, Greece is expected to receive up to 30 billion euro in bilateral loans from eurozone countries. The adjustment programme should not only ensure the financial stability of Greece, but also that of the euro area.

The support comes with strict conditions. The Greek government has already announced a freeze in public salaries and recruitment over the next three years, a higher retirement age and an increase in indirect taxation.

"I am convinced that this sound and ambitious programme will enable Greece to put right itseconomic and financial situation as well as its competitiveness",stated after the meeting Herman Van Rompuy, the President of the European Council.

The adjustment programme has been negotiated by the European Commission, the European Central Bank and the IMF with the Greek government. Herman Van Rompuy has convened the heads of state and government of the euro area for a meeting on the evening of 7 May in order to conclude the whole process and draw the first conclusions ofthe crisis for the governance of the euro area.

More information:
Statement on the support to Greece - Brussels, 2 May 2010
Statement by Herman Van Rompuy
Eurogroup press conference