Merkel: complete reform of pensions, privatisation and labour markets

BBC — German Chancellor Angela Merkel is giving her reaction.

We have always said this has always been about a three year programme. Essential changes must be made, complete reform of pensions, privatisation and labour markets.

On the €50bn privatisation fund:

€25bn will be used to recapitalise the banks, which will then be privatised. The fund will be run with European oversight.

“We want to use the best possibilities to privatise, and get the best possible revenue out of these assets. We need to support the programme, we have seen in the past that there have been problems implementing the programmes.”

Bailout terms:

“What happens in Greece, has to be in line with what happened with bailouts in previous countries.”

She said that debt relief was “out of the question”.

Greece anti-austerity:

Greece’s February anti-austerity laws will be repealed.

Bridge funding:

ESM will examine bridge funding to help Greece until the deal is ratified.

She tells reporters that there is no need for Plan B now.

So the threat of Grexit is off the table, even though a new bailout hasn’t been agreed yet (and that’s an important point).

Merkel says she can recommend “with full conviction” that the Bundestag should agree to open negotiations with Greece. But the Greek parliament must approve the entire conditions before the German parliament votes.