European Union gave in-principle approval for 86 billion euro bailout package to Greece

The European Union (EU) Summit on 12 July 2015 gave in principle approval to a bailout package worth between 82- 86 billion euro to Greece. The Summit was held in Brussels, Belgium.

A final Memorandum of Understanding (MoU) related to the bailout package will be reached between the creditors and Greece only after Greece undertakes certain reforms specified under the European Stability Mechanism (ESM) programme.

If finalized, the financial assistance will be the third bailout package from the European Union (EU) under the ESM, the eurozone bailout fund, since Greece plunged into severe economic crisis during 2009-10.

The bailout package is subject to following conditions

• Taking necessary legislative measures to broaden tax base to increase revenue, undertake comprehensive pension reform programme, safeguarding of full legal independence of ELSTAT, making the Fiscal Council operational among others prior to 15 July 2015.
• Adoption of the Code of Civil Procedure to accelerate the judicial process and reduce costs and transposition of the BRRD with support from the European Commission by 22 July 2015.

Further, before finalization of the MoU, the bailout package should be approved by the parliaments of Finland, Germany and Greece. Germany is the biggest ESM contributor with 190 billon euro out of the 500 billion euro fund.

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