BRUSSELS —
Eurozone finance ministers dropped plans Tuesday for a special face-to-face meeting on Greece’s new international bailout, saying political party chiefs in Athens had failed to provide the required commitment to reform.
A source familiar with negotiations on Greece’s $171 billion rescue also said conservative leader Antonis Samaras had yet to sign a commitment to implement the deeply unpopular package — a condition set by the EU and IMF lenders who are weary of broken Greek promises on economic reform and budget cuts.
Ministers in the Eurogroup had been expected to gather in Brussels today for a meeting that, if all had gone to plan, would have approved the bailout and saved Greece from a messy bankruptcy next month.
However, with the European Union’s patience with Greece close to the breaking point, Eurogroup chairman Jean-Claude Juncker said the ministers would hold only a telephone conference call before a regular meeting already scheduled for Monday.
Juncker said he was awaiting written undertakings from Greek party leaders on pushing through with the austerity package of pay, pension and job cuts — which Parliament passed early Monday as rioters torched dozens of buildings in central Athens.
“I did not yet receive the required political assurances from the leaders of the Greek coalition parties on the implementation of the program,” he said in a statement.
The source said in Athens that the problem lay with Samaras, who argues that austerity demanded by the EU and IMF is only deepening Greece’s recession and who has proved reluctant in the past to sign similar undertakings.
“So far, Samaras has not given a letter of commitment, and this is a problem,” the source told Reuters on condition of anonymity.
Samaras’ New Democracy party declined to comment.
A government source said Samaras would provide the undertaking this morning. If he does, he will be sticking to a pattern among Greek politicians of working right up to deadlines or beyond, infuriating the European Union.
Time is running out. Athens needs rescue funds to avoid a disorderly default when a $19 billion debt repayment comes due March 20.
The EU and IMF lenders fear the program of pension, pay and job cuts will not be implemented following elections that are expected in April, and have therefore demanded the signed personal commitments from the leaders of both parties in Prime Minister Lucas Papademos’ coalition.
Even before Juncker scaled down today’s Eurogroup talks, the Netherlands expressed doubts that the ministers would sign off on the bailout deal, Greece’s second since 2010.
“There is indeed a very small chance there will be final approval tomorrow because I think we should have everything clear on paper,” said Dutch Finance Minister Jan Kees de Jager.
