Greek sell-off 'threat to sovereignty'

Guardian
July 3, 2011

Greece staved off the immediate threat of default at the weekend but now faces severe restrictions on its sovereignty and must push through a wave of privatisations akin to the vast sell-off of East German firms in the 1990s after the fall of communism.

Jean-Claude Juncker, chairman of the Eurogroup of finance ministers, told Germany's Focus magazine that teams of privatisation experts from around Europe would now be heading to Athens to push through the state sell-offs, which are slated to raise €50bn (£45bn): "The sovereignty of Greece will be massively limited," he said.

Juncker's interview appeared just hours after Eurozone ministers signed off the fifth tranche of last year's bailout, worth €12bn. The payment must now be rubber-stamped by the International Monetary Fund (IMF) and pushed through by 15 July in time to meet several bond repayment deadlines. Agreeing the latest IMF payout, on 8 July, will be an early task for Christine Lagarde, the new IMF boss, who starts work in Washington on Wednesday.

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