The leaders of Germany, Italy and Greece are “optimistic” that a deal on a second massive bailout for Athens can be clinched next week, a spokesman for German Chancellor Angela Merkel said Friday.
The agreement on the $170 billion bailout has been delayed for months because of doubts over Greek political leaders’ commitment to tough new austerity measures as well as the worsening economic situation in the country that kicked off Europe’s debt crisis two years ago.
The statement from Merkel’s spokesman is the strongest indication yet that finance ministers from the 17 euro countries can decide on the new rescue at their Brussels meeting Monday.
“The three leaders are optimistic that the finance ministers can find a solution to the pending questions at the Eurogroup on Monday and thereby contribute to the stabilization of Greece,” Steffen Seibert said in a statement, after Merkel, Italian Prime Minister Mario Monti and Greek Premier Lucas Papademos held a conference call earlier Friday.
Greece is under huge pressure to get the green light on the second bailout so it can move ahead with a related $130 billion deal with its creditors to reduce its debt load. That deal has to be completed before March 20, when Athens faces a $18.9 billion bond redemption it cannot afford.
