Greece’s legislative steps helped to reach agreement

“All the intense work of the last week has paid off,” said Eurogroup President Jeroen Dijsselbloem as he was announcing that Greece and the European institutions “with input from the IMF” reached an agreement on the policy conditionality underlying the new European Stability Mechanism (ESM) program for Greece.

According to the Eurogroup meeting’s results, the ESM financial assistance facility agreement will cover an amount of up to €86 billion, including a buffer of up to €25 billion for the banking sector in order to address potential bank recapitalization and resolution costs. The European institutions, along with German Chancellor Angela Merkel, welcomed the “additional important legislative stepstaken over the last few days by the Greek authorities, and stressed that a significantly strengthened privatization program is a cornerstone of this new bailout.