I understand those concerns. And I agree that some of the efforts seem unfair. But I ask people to recognise the other alternatives which will be much more difficult for Greece and will affect even more the most vulnerable in the Greek society. So this is why it is the right approach to ask Greece to reform, to increase its competitiveness to have a viable future, irrespective of the crisis. You, in Greece, with our support, need to rebuild your country, your structures, your administration and your economy to increase the competitiveness of Greece. And the best hope of a return to growth and job creation is inside the euro area. Staying in the euro is the best chance to avoid worse hardship and difficulties to the Greek people, namely for those in a more vulnerable position

The Prime Minister has assured me that the coalition government will respect the commitments under the second programme and will speed up the key structural reforms that are needed, including the privatisation process and of course, also the reforms in the public administration, for instance, the reform against the tax evasion.

The key word here is: deliver. Deliver, deliver, deliver. The main issue is implementation to deliver results. To maintain the trust of European and international partners, the delays must end. Words are not enough. Actions are much more important. Following my meeting with Prime Minister Samaras, I am reassured that this delivery will happen.

In return I have been unequivocal that the European Commission will stand by Greece. I am here as a friend of Greece. I have repeatedly stated that Greece can make it, together Greece and Europe will make it. Greece is part of the European family and the euro area and we intend to keep it that way. All the heads of state and government of the euro area have stated in the clearest possible terms that Greece should stay in the euro as long as the commitments made are honoured. And there has been solidarity towards Greece.

The European Union and the wider international community have shown unprecedented solidarity with the people of Greece. We need a new consensus on reform and development so that Greece can grow again for the benefit of its citizens…”

Tomorrow, Thursday, European Commission President Jose Manuel Barroso is expected to arrive in Athens. He will meet with Prime Minister Antonis Samaras. U.S. Treasury Assistant Secretary for International Finance Charles Collyns is also expected to arrive to convey -tovima.gr writes- US President’s concerns for the crisis in the Eurozone and the state of the Greek economy.

According to media reports, yesterday morning, a 12-member troika middle-level troika team visited the Ministry of Finance and had meetings with Yannis Stournaras’ staff. Sources so far suggest that the troika will not negotiate anything in terms of objectives, insisting on cuts in wages and pensions.

In official statements, Reuters reports, both the EU and the IMF have said the programme was behind schedule and needed to be re-launched before Greece could get any more funds, with the next tranche not expected to be disbursed before September. “An IMF mission will start discussions with the country΄s authorities on July 24 on how to bring Greece΄s economic program, which is supported by IMF financial assistance, back on track,” an IMF spokesman said on Monday.

EU Commission President Jose Manuel Barroso will meet Prime Minister Antonis Samaras on Thursday [July 26] in Athens to discuss the country΄s progress under the bailout plan. “Mr. Samaras and President Barroso… will discuss the overall situation in Europe and obviously particularly focusing on Greece,” EU Commission spokesman Alejandro Ulzurrun told reporters in Brussels. Barroso is also due to meet in the early afternoon July 26 with the leaders of the junior members in the coalition government, PASOK and Democratic Left leaders Evangelos Venizelos and Fotis Kouvelis respectively.

Barroso will also meet later Thursday with Development minister Kostis Hatzidakis, Employment minister Yannis Vroutsis and health minister Andreas Lykourentzos in view of the ministers’ meeting with the Troika chiefs on July 27, Reuters reports.

Addressing New Democracy party’s parliamentary group yesterday, Prime Minister Antonis Samaras said it is the government’s aim to proceed immediately with structural changes and reforms, aiming to reverse the climate for Greece abroad, kick-start growth and set the base for the renegotiation of the bailout agreement.

According to ANA, Samaras noted that this was the first time in the last 38 years (since the restoration of democracy in Greece) that there was a convergence on policy among three political parties that were focused on completing the full four-year term.

“…My message to the Prime Minister and to Palestinians is clear: we have stood by you in this journey and we will continue to do so. In fact the European Union stands as the largest donor to the Palestinian people, including through UNRWA. From 2000 to the end of 2011, the EU has committed nearly EUR 4 billion in assistance through various instruments. So, our commitment is clear… The truth is that through our overall political and financial support we are laying the foundations of a future democratic and viable Palestinian state – its institutions and its infrastructure. And through this we are contributing to a two-state solution. That has and will continue to be our goal: two states living side-by-side in peace and security.

The resolution of the Arab-Israeli conflict remains a strategic priority for the EU. We will continue with our efforts, within the Quartet, to facilitate contacts between the parties and to resume substantive talks. In this context, it is important that both sides support confidence-building measures to re-launch the peace process.

Lately, international attention has been focused on other countries in the region. However the momentous change that we are witnessing throughout the Arab World should constitute an incitement and not a deterrent to the resumption of negotiations. The Middle East Peace Process cannot become an orphan of the Arab Spring.

Meanwhile it is important that the two parties do not act in a way that undermines the viability of a two-state solution. In this respect it is with concern that we see the continuous growth of settlements in the West Bank, including East Jerusalem.

I also welcomed signs of more concrete progress on Palestinian reconciliation. This is a key factor contributing to the unity of a future Palestinian State and to reaching the two-state solution.

In addition, the prospect of elections, which the Prime Minister has supported, would be a significant contribution to Palestinian state-building. It is important that all Palestinian actors take advantage of the positive developments towards democratisation in the region to build a future of democracy, security and prosperity.

I am fully aware of the magnitude of the challenges that the Prime Minister and the Palestinian people still face. But as I said before: we stand by you…”

Speaking at a joint press conference with the President of the European Parliament Martin Schulz, following his presentation of the priorities of the Cyprus Presidency at the plenary session of the European Parliament in Strasbourg, President Christofias said that the reason austerity policies have not worked was because they are one-sided.

“There needs to be a combination between fiscal discipline, which is necessary, and growth and creation of jobs. There is a need for balanced policies. That is what the Cyprus Presidency looks for.”

The President of the European Parliament said that the Cyprus Presidency is very well prepared. “It is one of the best prepared Presidencies I have seen in a very long time. Mr. Barroso has also evaluated the Presidency in the same way as I have,” Schulz said.

He expressed belief that Cyprus and President Christofias himself will strive for more social justice, solidarity, control of financial markets, combating poverty and noted that Demetris Christofias is the right person at this time to represent the EU on issues of social justice and to represent the European ideals based on the Community Method.

Replying to a question, the President of the European Parliament noted that Turkey should respect that the EU has certain rules one of which is the rotating EU Presidency.

“Turkey wants to accede the EU and not vice versa, that is why Turkey should respect the EU rules,” Schulz said.

“The last weeks have been a time of heightened tension in the European Union and in the Euro area in particular. It is now clear that the world expects Europe to commit to credible and concrete solutions to become more integrated and more united. Indeed this is now a real systemic global necessity if we are to ensure worldwide financial and economic stability.

We are now in a defining moment for European integration. We must articulate the vision of where Europe must go, and a concrete path for how to get there. I am not sure whether the urgency of this is fully understood in all the capitals of the European Union.

We must be realistic in what we can expect from one single summit of European leaders. But I believe this European Council can – and indeed must – give strong impetus to our growth agenda, through concrete measures to stimulate the economic activity, while also setting out a longer-term process to build a stronger, genuine Economic and Monetary Union.”

Referring to immediate measures, namely measures to stimulate the economy, Barroso said “we need both fiscal consolidation and growth. This growth can only come from the combination of sound public finances, deep structural reforms and targeted investment. We should not forget trade, internal and external, that IS, and must remain, an important source of European growth.

We expect Member States to agree to a “comprehensive package” of growth measures. These are significant measures that the Commission has been proposing over the last year and that will be backed by Europe’s Heads of State and Government, for example the increase on the EIB lending capacity, project bonds and a more targeted use of the EU structural and cohesion funds.

In addition, Member States should endorse, in full, the Country Specific Recommendations that the Commission set out on 30 May. These reforms are about changing head-on practices that impede our competitiveness and stop our markets working as they should.

The measures in this growth compact are major decisions that will tackle the roots of Europe’s problems, while at the same time oiling the wheels of the economy through targeted investment to get it moving again. Indeed, to complement the crucial reform effort, we must invest in projects and in areas where money is badly needed to spur growth.”

On 23 May, the European Council gave a mandate to its President, in collaboration with Jose Barroso, the President of the Eurogroup and the President of the European Central Bank, to present a vision for the future of a more deep and integrated Economic and Monetary Union.

Barroso said: “the report that we will present at the European Council is the start of the process towards deeper integration with a focus on those Member States which share the single currency. It builds on the bold efforts towards greater stability, coordination and growth that the European Union has taken since the start of the crisis. It seizes the moment to put these efforts in the perspective of a full Economic and Monetary Union, in particular the Euro area, and identifies the main building blocks of such an endeavour. It is a concrete demonstration of our unwavering commitment to the single currency and to the European project.

This integration process should be progressive. It should start with steps that can be taken immediately without a Treaty change. These would lead to longer term steps that may require such changes. At its heart will be a guiding concept – that greater solidarity and greater responsibility must go hand in hand: each step towards further solidarity would be accompanied by a corresponding step towards greater responsibility. At its heart will be a guiding method – the Community method that ensures democracy, legitimacy, accountability and inclusion.

What is at stake is not only the economic integration, it is also the overall economic confidence in the Euro area, and indeed, our commitment to the European project. This is why we need to be bold and define the way forward.

For a genuine Economic and Monetary Union to be established, I think that we need a “banking union”, a “fiscal union” and further steps towards a “political union”.”

Barroso added: “I want, once again, to pay tribute to the courage and exceptional resilience of the Greek people. A lot of sacrifices are being demanded from them to redress their economy and move into a prosperous future.

The second economic adjustment programme agreed between Greece and the Eurogroup is the foundation to achieve this goal. We stand ready to continue to support Greece in its endeavour…”

President of the European Council Herman Van Rompuy ahead the G20 summit in Los Cabos, Mexico argued: “…We more than share the worries about the debt crisis in the Euro area. It’s in our own interest to overcome this crisis… The crisis has affected different countries in different ways. These divergences were reflected in the current account of the balance of payments. Today these divergences are decreasing significantly. So are the fiscal deficits in the Euro area. A common currency needs this convergence.

We continue also combining three ways of tackling this crisis: reforms at the level of the Member States and at the level of the Euro area; promoting economic growth with an active agenda on investment and at the same time ensuring differentiated fiscal consolidation; crisis management with new financial and governance tools (for instance recapitalising the banks) and at the same time deepening our economic and monetary union, so that the euro becomes an irreversible project…”

“…The Euro area Member States are determined, all the more after the choice made by the Greek people. Greece wants to stay in the eurozone. We are confident that the new Greek government will take ownership of the adjustment programme to which the Greek authorities had committed earlier this year. This is the basis upon which to build to foster growth, prosperity and jobs for the Greek people…”

Finally, European Parliament President Martin Schulz made the following statement on the results on parliamentary elections in Greece: “I welcome the results of the general elections in Greece. The results show a broad and clear support in favour of Greece staying in the euro zone.

I salute the efforts of the Greek people to overcome the crisis. They have made great sacrifices. I hope the burden of the reforms will be spread more equally to achieve greater social justice.

I hope that Greece will rapidly form a government that breaks the political deadlock and pursues the required reforms to overhaul the economy and Greek public finances. The Greek people deserve a stable and prosperous future.

I congratulate Antonis Samaras and his New Democracy party for winning the elections and I encourage the Greek political forces to form a responsible coalition government in the coming days.

I am particularly pleased with New Democracy’s declaration that they will broadly stick to commitments Greece has made to the European Union.

The new Greek government will be able to count on our constructive cooperation in possible fine-tuning of its reform strategy and economic targets. If Greece sticks to its commitments, the EU can examine what could be done further to solve the crisis.”

I reiterated the Commission’s strong desire that Greece should remain a member of the euro area and that we will continue to do everything in our power for this to happen.

The euro area has shown unprecedented solidarity to Greece and its people. It has made a commitment to maintain financial support for Greece as long as is necessary, assuming Greece maintains its commitment to implement the structural reforms that are essential for a return to growth. Without this solidarity, Greece will not be able to return to growth and prosperity. I therefore underlined the importance of Greece maintaining the commitments it has made.”

Meanwhile, at the Summit of the European People’s Party (EPP), which took place today ahead of the informal European Council, EPP leaders adopted a declaration stressing their commitment to overcome the current economic difficulties and to restore confidence in the European economy. EPP leaders stressed in an announcement: “Since 2008, the EPP and its leaders have dedicated all their efforts to fight the current economic and financial crisis. The declarations that we adopted in Helsinki and in Marseille show our commitment to ensure fiscal policy sustainability and to, at the same time, remove all the obstacles that impede growth in Europe,” EPP President Wilfried Martens declared.

“Actions must be taken in order to combat the excessive levels of public debt. That’s why the EPP is supporting the swift ratification of the Fiscal Pact so that we can create a stable and predictable environment that will stimulate economic growth,” Martens added.

“In addition, a number of concrete steps such as providing a well-functioning, integrated and transparent financial market, initiating labour market reforms, creating the digital single market, cutting red-tape, can facilitate the return of Europe on the path of sustainable development. In an increasingly challenging globalized world, our focus should be on improving productivity and competitiveness,” the EPP President underlined.

“Therefore, the EPP heads of state and government and party leaders are committed to reaching an agreement on further steps towards completing the EU economic strategy until the meeting of the European Council on 28th-29th June 2012, and call on other Members of the European Council to adopt a similarly constructive attitude,” Wilfried Martens said.

Finally, the declaration from the Summit also underscores EPP’s solidarity to Greece: “During the meeting, all of our leaders stressed the importance of Greece remaining in the Eurozone. That’s why we offered our full support to the efforts of Nea Demokratia and its President, Antonis Samaras, and we are prepared to consider possible ways to strengthen investment, growth and employment complementing the necessary reform measures and respecting the commitments of the pursued programme,” the EPP President concluded.

In the G20 Europe will push for the implementation and enhanced monitoring of the Cannes Action Plan for Growth and Jobs. Tackling global macroeconomic imbalances and promote growth should remain at the core of the G20 agenda. But not growth driven by unsustainable borrowing. Growth must be socially inclusive and environmentally sustainable. We must strive for solidarity not just within but across the generations…”

Addressing another event, EU Commissioner for Economic and Monetary Affairs and the Euro Olli Rehn: “Our latest European Economic Forecast shows the EU economy to be in a mild and short-lived recession. A slow and subdued recovery is forecast to begin from the second half of the year on, and continue over 2012-13. But this will only happen on the condition that confidence gradually returns and decisive policy action is taken.

In the last quarter of 2011, Europe had fallen into recession. Yet, fresh data published this Tuesday shows that, for the first quarter 2012, growth was, in fact, not negative.

Although the economic climate remains fragile, this does not mean there are no positive signs. At the beginning of this year, we saw global trade growth accelerate once again. This was particularly beneficial for those EU member states that are more open to trade, especially the countries in Northern and central Europe, but also programme countries – Ireland and Portugal, which have recently seen their exports grow well.

GDP growth will remain uneven across Member States. The same applies for unemployment, with some member states enjoying virtually full employment, with others suffering from rising unemployment. It is unbearably high for young people who need hope, confidence and opportunity for their future.

What we are seeing is a rebalancing of the macroeconomic imbalances that built up in Europe before and after the crisis began. Over the last decade, our integrated financial market channelled savings from countries with slow growth in domestic demand into countries with current account deficits, where domestic demand was thriving with credit booms and increasing wages and prices. This applies both within the EU as well as across the Atlantic…”

“The priority now is to make the second programme work. This is our collective task: supporting the Greek authorities and the Greek people. To that end, the Commission is already taking concrete steps: Together with those Commissioners most closely involved, I have had very concrete talks with Prime Minister Papademos and his team about getting key growth-enhancing decisions taken immediately. As you will have seen from my letter, we have agreed to concentrate on a number of key priorities. Improving youth employment, promoting a more business-friendly environment, providing liquidity to SMEs, sweeping away barriers to the absorption of structural funds.

“These are all areas where we can make real progress in weeks, not months or years. The Commission Task Force under Horst Reichenbach is currently on the ground discussing how to put these measures into practice with the Greek government.

“And finally, just yesterday I held a meeting with President Hoyer of the EIB, the European Investment Bank, to examine how our support for Greece can be made more effective. To cement this approach, I intend, in the coming weeks, to present, together with Vice President Rehn, a Communication on growth and jobs for Greece, taking stock of the progress that has been made and setting out the top priorities for the future. As I set out in the Roadmap to Stability and Growth, finding a lasting solution to the problems in Greece is an essential prerequisite for stability. Without stability there is no confidence. And without confidence we will not get growth and jobs…”

Barroso writes: “… the Commission is ready to support the Greek authorities in taking decisions that can restore confidence and begin the process of revitalising the Greek economy… there are a variety of steps that should be taken right away to improve the business environment; to support small businesses and young people; and to remove the bottlenecks in public administration and the financial system that are preventing the structural funds from flowing to where they are needed, holding back growth and job creation.

The European Commission has already paid more than EUR 8 billion of the EUR 20 billion allocated to Greece since 2007 through the EU structural funds. We are keen to help your authorities target the remaining funds on stimulating growth and competitiveness. For now, there is no shortage of funds but as we discussed there are still too many open questions and administrative hurdles to be overcome before the available funds can reach the real economy.

In priority areas we need to identify where the bottlenecks are and decide on how to remove them within a clear timeframe. This often has to be done top down, which is why I am prepared to work in partnership with you to get things moving…”