European Union economic affairs chief Olli Rehn pressed the Greek parliament on Tuesday to adopt a tough austerity programme, saying it was the 'only way to avoid immediate default.'
'This week Greece faces a critical juncture. Both the future of the country and financial stability in Europe are at stake,' Rehn said in a statement.
'I trust that the Greek political leaders are fully aware of the responsibility that lies on their shoulders to avoid default,' he said.
'The only way to avoid immediate default is for Parliament to endorse the revised economic programme.'
Rehn slapped down speculation that Europe was working on a contingency plan in case Greek lawmakers this week reject 28.6 billion euros in budget cuts and tax rises as well as a 50-billion-euro privatisation programme.
'To those who speculate about other options, let me say this clearly: there is no Plan B to avoid default,' he said.
A high-ranking European official, speaking on condition of anonymity, has said that a Plan B was in the works, stressing that 'the next step is not a default of Greece.'
German finance minister Wolfgang Schaeuble said in a newspaper interview published on Sunday that the eurozone must be 'prepared for the worst' and would cope even if Athens defaulted on its debt.
Rehn reiterated that passing the austerity measures was a pre-condition for the EU and IMF to release 12 billion euros from last year's 110-billion-euro bailout, which Athens needs by July to avoid financial collapse.
'They must be approved if the next tranche of financial assistance is to be released,' he said.
'The European Union continues to be ready to support Greece. But Europe can only help Greece if Greece helps itself,' he said.
Source : New Age
