Spain PM hails 'balanced agreement' on Greece

13th July 2015, Comments 0 comments

Spanish Prime Minister Mariano Rajoy hailed Greece's deal with its eurozone creditors on Monday as a "balanced agreement" that can help heal Greece's economy and strengthen the eurozone.

"I think it is a balanced agreement," Rajoy told a news conference. "The key now is that everyone do their part and honour their commitments."

Under the deal, Greece's left-wing Prime Minister Alexis Tsipras has to introduce tough conditions on labour reform and pensions, VAT and taxes and measures on privatisation.

It will also park assets for privatisation worth up to 50 billion euros ($56 billion) in a special fund that will be used to recapitalise Greece's banks.

"This is good news," Rajoy said of the deal. "It strengthens the common currency, a currency in which the vast majority want to stay."

Rajoy has taken a tough line on Athens during the past six months of debt talks.

His conservative government says that its own austerity measures from 2012 are to thank for avoiding a Spanish bailout and returning Spain's economy to growth.

He said that thanks to the new deal, "in Greece there will be growth, job creation and improved welfare for citizens."

Separately, a regional deputy of Spanish anti-austerity party Podemos, allies of Tsipras's Syriza party, branded the Greece deal a "financial coup d'etat" against Athens.

"What they are trying to do in Greece is launch a financial coup d'etat and convert it into a protectorate," said Pablo Echenique, a former member of the European Parliament and now a regional deputy.

The new rescue for Athens is the country's third since 2010. It came after a bitter six-month struggle following Tsipras's election in January that put Greece's membership of the eurozone in the balance.

Athens will now have to rush through new tough reform laws by Wednesday.

© 2015 AFP

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