Greece’s Third Bailout: Euro Summit Statement

Jean-Claude Juncker, President of the European Commission, with Prime Minister Alexis Tsipras, President François Hollande and Prime Minister Charles Michel at the Euro summit, Brussels, 12 July 2015. Photo source: http://ec.europa.eu

Greece has agreed to tough reforms after marathon talks with eurozone leaders in return for a three-year bailout ended in the early morning of July 13.

Talks between Prime Minister Alexis Tsipras and European partners on a three-year memorandum will start after the Hellenic Parliament votes on Wednesday to pass legislation to implement the measures agreed in Brussels.

According to the Euro Summit statement, the measures Greece must vote on include the streamlining of the VAT system and the broadening of the tax base to increase revenue and pension reforms.

The new Greek bailout will involve a loan up to 86 billion euros from the European Stability Mechanism (ESM). The International Monetary Fund (IMF) will provide 16 billion euros from the current program, while an investment package of 35 billion euros is also included.

A fund that will manage Greek assets, aiming to generate 50 billion euros, will also be established.

To read the full Euro Summit statement, press here.