Greece needs to adopt structural reforms if it wants to get more bailout funds from creditors, European Commission Vice President Jyrki Katainen told Austrian newspaper Der Standard. Weekend talks on ending the deadlock between Greece and its international creditors broke up in failure, with European leaders venting frustration as Athens stumbled towards a debt default that threatens its future in the euro.
"A solution is possible, but it depends on the Greek government," said Katainen, a Finn who is in charge of growth, employment and investment policy. In an interview published on Monday, he said Commission President Jean-Claude Juncker had done his utmost to forge a deal. "But unfortunately the Greek government was not cooperative." Katainen said there was loads of good will towards Greece on the side of the EU, member states and the Commission.
"But money alone does not help. You could provide more and more liquidity (but) without structural reform that brings absolutely nothing." He added it was difficult to say at the moment if some kind of transitional arrangement for a year or two could be arranged, saying only that a sustainable solution was required.
Time is running out for Greece - it has four days to accept the conditions creditors have attached to more bailout money, or risk a financial crisis that could force it out of the eurozone. Greece needs to find 1.54 billion euros to pay the International Monetary Fund by June 30. But the bail out money will only be released if the government agrees to economic reforms, something it has resisted since February.
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