Bloomberg News

Rehn Says Too Early to Know Whether New Greek Steps Adequate

October 03, 2011

Oct. 3 (Bloomberg) -- European Union Economic and Monetary Affairs Commissioner Olli Rehn praised the Greek government’s latest budget cuts while saying it’s too early to know whether they are sufficient to secure the next aid tranche for Greece.

“Greece has taken important decisions in the past weeks, also including yesterday,” Rehn told reporters today in Luxembourg before a meeting of euro-area finance ministers. “We are currently assessing whether Greece will meet its fiscal targets with the current measures.”

The Greek government approved 6.6 billion euros ($8.8 billion) of austerity measures last night to narrow the 2012 deficit to 6.8 percent of gross domestic product, missing the 6.5 percent goal previously set with the EU, International Monetary Fund and European Central Bank. Finance Minister Evangelos Venizelos had previously said Greece would miss the targets and the EU, IMF and ECB accepted the new budget.

“Our teams are in Athens” and “the mission is ongoing and working very actively in order to assess the impact of the measures,” Rehn said.

Greece is seeking to qualify for a sixth disbursement of aid under last year’s 110 billion-euro rescue from the euro area and IMF. The next tranche totals 8 billion euros.

To contact the reporter on this story: Jonathan Stearns in Luxembourg at

To contact the editor responsible for this story: Jonathan Stearns at

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