ATHENS: Greek Prime Minister George Papandreou Thursday warned the European Union of the risk of not taking decisions that lead to a resolution of the debt crisis at this weekend’s summit.
“There are serious doubts about whether we will reach decisions on Sunday.... I am sounding the alarm against more delays,” Papandreou said at a Cabinet meeting, according to a statement.
The Greek premier called on EU leaders to take “decisive” action to resolve the debt crisis which has rocked Greece and the entire euro currency area.
However, euro zone leaders may not agree on a second rescue package for Greece until the end of November, according to draft conclusions for a crucial summit obtained by The Associated Press Thursday.
The European Commission, the EU’s executive, had been pushing for the bailout deal to be finalized this weekend to remove the uncertainty hanging over the country that has hit stock markets in recent weeks.
The draft statement prepared for Sunday’s summit says “we look forward to the conclusion of a sustainable and credible new EU-IMF multiannual program by the end of November.”
The sentence is still in brackets, suggesting that the timing and content of the second bailout is still under discussions.
A second, 109 billion euro ($151 billion) bailout for Greece was tentatively agreed in July, but that deal has been reopened as Germany and other countries want banks and other private investors to take steeper losses on Greek bonds.
France, the Commission and the European Central Bank oppose deeper cuts to Greece’s debt load, worried that such a move could hurt banks across the continent and undermine confidence in other struggling countries.
The draft statement also suggests that Greece is almost sure to receive the next 8 billion euros batch of its first, 110 billion euros ($152 billion) bailout.
“We welcome the decision by the Eurogroup on the disbursement of the 6th tranche” of aid money, the statement says, referring to a meeting of euro zone finance ministers scheduled for Friday, two days ahead of the summit.
Meanwhile, Greece’s international creditors warn that a second rescue package tentatively agreed upon in July may not be enough to save the country from bankruptcy, but believe Athens should nevertheless get its next batch of bailout loans, according to a draft report obtained Thursday by The Associated Press.
In another development, Greek authorities said one person has died after violent clashes broke out amongst protesters during a demonstration by tens of thousands objecting to the government's new austerity measures.
Parliament Deputy Speaker Anastasios Kourakis announced the death during a debate on the new bill ahead of a final vote later Thursday.
Dozens of people received first aid earlier in the day after hundreds of youths attacked peaceful demonstrators gathered outside Parliament. Police fired repeated rounds of tear gas to separate the two sides.
