Comments ahead of EU leaders' summit
European Union leaders are expected to press Greece at a summit on Thursday to adopt deeply unpopular austerity measures, in return for fresh financial support.
Following are highlights of comments before the two-day EU summit begins:
AUSTRIAN CHANCELLOR WERNER FAYMANN
We trust (Greek) Prime Minister Papandreou that what he will put to his government, and what parliament must decide, will get support.
GERMAN CHANCELLOR ANGELA MERKEL ON GREECE:
In such a situation everyone must stand together in a country. This was achieved in Ireland and in Portugal and therefore we pressed for this also to be achieved in Greece.
LUXEMBOURG'S PRIME MINISTER JEAN-CLAUDE JUNCKER ON GREEK BAILOUT PLAN:
All conditions must be met. When you want all conditions to be met, you can't let anyone believe there is a Plan B. And there isn't a Plan B.
If Greece does what it has to do, we will do what we have to do. This is not a threat. It's just a confirmation that we're continuing our efforts.
ON MEETING GREEK OPPOSITION LEADER ANTONIS SAMARAS:
I pressed him forcefully to abandon his negative position.
IRISH PRIME MINISTER ENDA KENNY ON TALKS ABOUT GREECE IN MEETING OF CONSERVATIVE PARTIES THAT INCLUDED GREEK OPPOSITION LEADER ANTONIS SAMARAS:
I made the position clear that no bailout is going to work unless the government and the people of that country want to make it happen. There was quite intense discussion about the situation in the Greek economy and the difficulties that Europe faces as a consequence.
The vote in the Greek parliament next week is absolutely crucial to the conditions that will apply for a new program for Greece. People are well aware of the consequences if the Greek parliament decides not to accept the conditions. The consequences are not for Ireland.
The consequences are for the European Union. That has been made absolutely clear by the president of the Parliament, the president of the Commission, the president of the Council, (German) Chancellor (Angela) Merkel and everybody else. This is not just about any individual entity or any individual country. A decision by the government and the opposition parties is absolutely crucial to the future of Europe.
SWEDISH PRIME MINISTER FREDRIK REINFELDT ON GREEK AUSTERITY PROGRAMME:
It's very important that no Greek leader tells the Greek people that they have a short-cut where they can get out of the pressure they now feel and they do not need to reform... I think that would be irresponsible.
We have seen many examples -- Sweden is one of them -- where countries get into a lot of trouble with public finances and with the competitiveness in the economy. With Greece there are deep-rooted problems that should have been addressed many years ago and they are now pushed to making quick reforms which I think is going in the right direction, but of course people are getting very distressed with this.
We can understand that, but I think basically there is no alternative but reforming, increasing competitiveness in Greece and in other countries that are in the same condition.
DUTCH PRIME MINISTER MARK RUTTE
Today we will ask the leaders and citizens of Greece to rise to the occasion and do what must be done. It's going to be difficult and painful, but it's the only way out of the crisis. A nation undivided, focused, and fully committed will not be abandoned.
GERMAN CHANCELLOR ANGELA MERKEL
ON GREECE:
We will speak about Greece but there will not be any operational decisions. The finance ministers have started a process which is an important and correct one. We will affirm it. But there can be no decisions. First an important vote must take place in Greece.
ON CHANGES TO SCHENGEN ZONE:
I will make it very clear that the free movement of citizens in Europe through Schengen is a big achievement, which should not be endangered by national sensitivities.
EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN
ON NEGOTIATIONS ABOUT GREEK DEBT:
The issue of the method of negotiation is linked to the broader assessment of the nature of the event.
We see that a decentralized way of working through the national ministries of finance, them contacting the banks or financial institutions based in those jurisdictions and discussing the possibility of the rollover of bonds completely on a voluntary basis, is the best method.
We expect it will yield results, because it is in the interest of the private sector, in the interest of the banks and financial institutions to avoid that Greece would face a default and we trust there will be a substantial participation through this voluntary method of private sector involvement.
ON MESSAGE FROM EU LEADERS TO GREECE:
Certainly Greece will be discussed today in the European Council and I would expect the European Council will reiterate the messages of the Eurogroup and the Commission by underlining the importance of adopting the medium term fiscal strategy and the privatization program before the end of June and also facilitating a broader, cross-party consensus in Greece.
ON INCENTIVES FOR GREECE TO ADOPT THE AUSTERITY PACKAGE:
The incentive is that we are working together with Greece in order to help to reform the country and President (Jose Manuel) Barroso yesterday, in the name of the Commission, made an important imitative on frontloading 1 billion euros in structural funds.
That shows the EU is concerned about growth in Greece and ready to support growth in Greece, but the first thing is that Greece must help itself so that the other Europeans can help Greece. That's the bottom line.
ON VOLUNTARY DEBT ROLLOVER, AND POSSIBILITY THAT RATINGS AGENCIES MIGHT CALL IT A DEFAULT:
There are different interpretations of this. It is very clear that the European Union is working on the basis of a Vienna-style initiative -- a voluntary rollover of bonds so that it will not create a credit event.
This work is going on in a decentralized manner and I trust it will yield positive results, both in terms of substantial participation of the private sector and by avoiding a credit event.
ASKED ABOUT POSSIBILITY THAT IF MARKET RATES NOT OFFERED IN A ROLLOVER IT WILL BE CLASSIFIED AS A DEFAULT:
We are working on a solution which is based on a voluntary rollover and I expect it will not create a credit event.
(Reporting by David Brunnstrom, John O'Donnell and Jan Strupczewski)
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