Greece called on European Union leaders Sunday to step in and resolve growing dissension among euro-zone members angered by a special deal under which Finland would receive collateral in exchange for extending new loans to Greece.
The deal, which was announced last week, has complicated Greece’s hopes for a fresh bailout. While it has also become another bone of contention in Europe’s increasingly frantic efforts to stop the debt crisis from engulfing more members of the currency bloc.
In a statement, Greek Finance Minister Evangelos Venizelos said Europe must send a “clear and positive message” about the deal, which was reached with the unanimous support of European leaders at a July 21 summit.
“Technical solutions are easy to find, under the precondition that they do not sacrifice the credibility and the effectiveness of the program,” Venizelos said in a letter to the European Union leaders, a summary of which was released by the Finance Ministry.
“The issue, however, is above all a political one and must be confronted as such, so as to send a clear and positive message to international markets and the European communities,” the letter added.
The letter was sent to Eurogroup Chairman Jean-Claude Juncker, European Monetary Affairs Commissioner Olli Rehn and European Central Bank President Jean-Claude Trichet.
It comes after the governments of Austria, the Netherlands, Slovakia, Slovenia and Estonia all expressed criticism of the deal.
Under its terms, Greece will deposit about EUR500 million in an escrow account with the Finnish state, as a precondition for Finland to release funds to the European Financial Stability Facility, Europe’s temporary bailout fund, which is being used to finance fresh aid for Greece.
(source: Dow Jones)
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