Greece must get reforms back on track, says ECB’s Asmussen

Date: Monday 02 Jul 2012

European Central Bank (ECB) executive board member Jörg Asmussen has insisted that Greece must get its reform programme back on track rather than wasting time attempting to renegotiate bailout conditions.

In a speech at the 16th Economist roundtable with the government of Greece titled 'Transforming uncertainty into stability, wisdom and growth', Asmussen pointed out the need for Athens to take the reins in order to restore confidence.

He said that “many other necessary reforms have not been followed through” while pointing out that “policy implementation has virtually stalled over the last three months.

“So the first priority for the new Greek government has to be getting the programme back on track.” Asmussen makes it quite clear that the country’s current difficulties do not stem from the bailout agreement, but from years of unsustainable economic policies.

He said that “with or without the programme, any Greek government would have to pursue a similar adjustment to bring the economy back on track and restore the confidence of the financial markets.”

Asmussen is not shy in giving the Hellenic Republic his advice: “My point is this: the new government should not lose precious time looking to avoid or loosen the programme (…) Restoring confidence in Greece has to begin at home. And to do this effectively, authorities have to make the case more strongly for reform.”

JM

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