Europe Believes Greece Needs Oversight

The euro area signaled that Greece must stay on a tight economic leash after any early exit from its rescue program, highlighting political risks for Greek Prime Minister Antonis Samaras as he seeks to avoid a snap election.

Greece will probably need a precautionary credit line underpinned by “enhanced” policy conditions as of January, Dutch Finance Minister Jeroen Dijsselbloem told reporters late yesterday in Brussels after chairing a meeting with his euro-area counterparts.

He also said the International Monetary Fund, co-financer of Greece’s 240 billion-euro ($297 billion) rescue along with the euro area, should have a role in the future Greek program. Follow-up support would be financed by the European Stability Mechanism, or ESM, the euro area’s permanent rescue fund.

Bloomberg

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