Greece mends relations with EU and IMF

Financial Times
February 13, 2011

Greece has attempted to patch up relations with the European Union and International Monetary Fund a day after it accused both of interfering in its domestic affairs.

The dispute over a scheme to cut public debt and promote economic growth by selling €50bn ($68bn) of state assets has highlighted growing opposition to structural reform within the governing Socialist party.

George Papaconstantinou, finance minister, said on Sunday the government was committed “in the public interest” to carrying out the privatisation plan agreed with the “troika” – representatives of the European Commission, the IMF and the ECB.

Earlier, a government spokesman said the troika had “behaved unacceptably” in proposing the sell-off, adding: “We asked them for help ... not to meddle in our internal affairs.”

The statement marked the first time that Greece has publicly criticised the terms of its €110bn bail-out last May by eurozone partners and the fund.

The troika called the incident “regrettable”. It said in a statement: ”We recognise the difficult challenges facing the Greek economy and we have the deepest respect for the tremendous efforts being made by the Greek people.”

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