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The Eurogroup of finance ministers offered the Eurozoneleaders a choice of wording if a deal cannot be struck on a bailout for Greece - giving Athens a "time-out" from the euro zone and possible debt writeoffs.
The four-page document from the ministers which is being reviewed at the summit of euro zone leaders concludes a long list of conditions for Greece to get a programme by offering two possible conclusions, both contained within drafters' square brackets.
Given the need to rebuild trust with Greece, the Eurogroup welcomes the commitments of the Greek authorities to legislate without delay, by 15 July, a first set of measures. These measures, taken in full prior agreement with the institutions, will include:
- the streamlining of the VAT system and the broadening of the tax base to increase revenue;
- upfront measures to improve long-term sustainability of the pension system as part of a comprehensive pension reform programme;
- the adoption of the Code of Civil Procedure, which is a major overhaul of procedures and arrangements for the civil justice system and can significantly accelerate the judicial process and reduce costs;
- the safeguarding of the full legal independence of ELSTAT;
- full implementation of the relevant provisions of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, in particular by making the Fiscal Council operational before finalizing the MoU and introducing quasi-automatic spending cuts in case of deviations from ambitious primary surplus targets after seeking advice from the Fiscal Council and subject to prior approval of the institutions;
- the transposition of the BRRD at the latest within a week with support from the European Commission.
Assuming the Greek authorities reiterate their unequivocal commitment to honour their financial obligations to all their creditors fully and timely.
[Provided that all the necessary conditions contained in this document are fulfilled, the Eurogroup and ESM Board of Governors may, in accordance with Article 13.2 of the ESM Treaty, mandate the institutions to negotiate a new ESM programme, if the preconditions of Article 13 of the ESM Treaty are met on the basis of the assessment referred to in Article 13.1.]
And if there is no agreement, (temporary GREXIT
[In case no agreement could be reached, Greece should be offered swift negotiations on a time-out from the euro area, with possible debt restructuring.]
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