Since Sunday, Eurozone leaders have been in talks seeking to establish terms for additional financial aid to Greece. Earlier in the day, European Council President Donald Tusk said the sides reached a unanimous agreement on Greece’s economic crisis.
“We agreed the terms and volume of the aid program at 86 billion euros for three years, as well as how to provide the stability of the loan, Merkel said at a press conference aired on ERT television.
Holding wide-scale reforms under the conditions of their fulfillment will allow Greece to the path of changing the country’s economy, Merkel said.
“There is a wide range of reforms with which Greece can return to the path of economic renewal under their factual fulfillment.”
“We need a considerable amount of funds, up to 25 billion euros, to recapitalize the banks. There’s no arguing the fact that the situation over the last six months has considerably worsened,” Merkel said.
Merkel added that Greece must first take some "trust-building" measures, including a vote on a number of laws.
Earlier in the day, German, French and Greek leaders and Tusk presented a compromise proposal on the issue at the Euro Summit following the Sunday talks.
A proposal by the Eurogroup leaders presented during the Sunday talks in Brussels underscored the necessity of major economic reforms which they stated would help Greece restore its economy and rebuild international trust.
Greece, severely hit by the aftereffects of the 2008-2009 economic crisis, has an overall debt standing at some $350 billion. Athens has been involved in lengthy talks with its international creditors — the European Central Bank, the International Monetary Fund and Eurozone countries — to secure a third bailout package.
