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Extension of the payment term of the 110 billion aid to at least 11 years and reduction of the interest rate on government borrowing requested the Greek government at the meeting of Euro Group and subsequently of Ecofin. Moreover, the countries of the periphery of the euro zone expressed their will for rapid agreement on the issue of finding a common solution to the debt crisis of the union.

Currently, Germany, Finland and the Netherlands continue to express concerns about the proposal to increase the funds for financial stability. The countries of the periphery of the euro zone such as Greece, Ireland and Portugal want greater involvement of central European countries after all of them have put into operation programs for fiscal consolidation and recovery.
 
By the end of March, European leaders must reach an agreement on the structure and functions of the European stability fund. The European Council President Herman Fan Robben will meet with representatives of all member countries on March 11 to consider all viewpoints concerning the introduction of the upcoming reforms in the union. Robben said in a written message that all parties would be heard and he would present his ideas and alternative solutions. The European Commission will take part in the meeting too. Then, on March 21, 2011 an extraordinary meeting will be held to clarify the final version of the text that will be presented for vote at the summit of the European Union on March 24-25.  

The Greek Finance Minister George Papakonstantinou said that the final agreement should provide more funding for the European stability fund. He added that the organization should have a wider scope of activity on the primary and secondary bond market, because under the current conditions the sustainability of poorer countries’s debts are threatened in the medium term.

The new pact of competitiveness is the other point in the negotiations on improving the functions of the European Union countries for which Papakonstantinou said that should be seriously discussed before taking the final decision. The German-French model, which is discussed now, seeks to remove the automatic indexation of wages, the increase in the retirement age and the reduction of the tax burden on business profits for the member countries. Any changes are being made in the name of old continent countries’ recovery by improving their competitiveness and trade volume.

As for Greece, George Papakonstantinou said that the first impressions of the European Commission and the European Central Bank concerning the results of the supervisory Troika are positive. Economic analysts estimate that this is a good sign and the country will have no problem getting the next installment of the financial aid from the International Monetary Fund and the euro zone. However, the government will have to carry out urgent structural changes in the management and operation of public administration and public enterprises and the liberalization of the domestic market. The ultimate goal is the budget deficit to reach 6 billion euros to 2014 compared with the 17 billion euros at the moment.