Dijsselbloem: Eurozone will support Greece as long as the country implements its reforms

The meeting of the 17 eurozone finance ministers in Luxembourg has concluded, with countries facing financial problems overshadowing any decisions on the banking union that will be discussed tomorrow at the Ecofin.

“Greece is implementing an extremely difficult adjustment program but the country returns to growth,” Eurogroup president Jeroen Dijsselbloem said at a press conference adding that while there is still a long way ahead of Greece, the country is on track. He also said the financing gap in Greece will be discussed in January 2014 and that the Eurogroup will continue to support the country as the it implements the agreed reforms.

Budgetary and financing gap in Greece

"It's too early to talk about the size of the fiscal or financial gap that might occur in Greece and I'm really surprised by some figures I heard before the meeting,» Eurogroup president responded to statements by the ECB executive board member Jörg Asmussen who spoke of s "significant financial gap" in 2014, heralding the need for new measures. Dijsselbloem reiterated that there is no chance for a new haircut of the Greek debt and that officials are examining other ways of debt relief under the decisions of the Eurogroup in November 22, 2012.

The European Commissioner for economic and monetary affairs and the euro

Olli Rehn confirmed that it is too early to assess any needs of Greece in 2014, while for Spain and Ireland he said that the program of recapitalization of Spanish banks and aid program for Ireland will be completed successfully the next two to three months. However, both men declined to answer directly whether Greece will need to take new financial steps in 2014 as well, referring to the Troika evaluation.

Banking union

A key issue on the agenda of the meeting were the steps that must be taken towards the banking union. Dijsselbloem referred to the stress tests that the ECB will present to a number of European banks next year to see if they are strong enough to withstand a possible new crisis or if they need more capital.