Government endorses Greek bailout deal

At its extraordinary meeting on Wednesday, the Estonian government gave its nod to the new rescue package for Greece, the sole item on the session’s agenda, and forwarded the corresponding bill to parliament. Parliamentary approval of the memorandum of understanding to be concluded between the European Commission and Greece is required before the government can agree to provide financial aid to Greece through the European Financial Stability Facility (EFSF).

Representatives of euro zone countries have agreed in principle to the terms and conditions of the next bailout program for Greece for the period 2012-2014, which includes Estonia’s contribution via the EFSF.

Greece has agreed to implement austerity measures with the aim of reaching a primary surplus in 2014. It is also carrying out a privatisation plan that should bring at least 4.5 billion euros into the state coffers this year, 7.5 billion euros by 2013, and 15 billion euros by 2015. Other measures pledged by Greece as part of the deal include a tax reform and implementing structural reforms to promote economic growth, as well as better financial sector regulation.

Estonia did not take part in the first bailout put together for Greece in May 2010, out of which 73 billion dollars has been lent to the country by now.

Source: Estonian Review

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