Greece seems not to have met terms of its international rescue package recently, European Central Bank governing council member Ewald Nowotny has said.
The comments, published in Austria's Kronen Zeitung appear to be the first public confirmation that a joint inspection team from the ECB, the European Commission and the International Monetary Fund now in Athens has found shortcomings in Greece's implementation of its bailout programme.
"Greece has apparently not fulfilled the conditions sufficiently of late. The issue of privatisations will be the most sensitive point here," Mr Nowotny said.
Greek prime minister George Papandreou, hit back at criticism, saying euro zone countries must work together to
shore up the common currency and tackle economic problems.
"We are looking for scapegoats, we are playing a blame game," he told a meeting of centre-left politicians in Oslo. "We are saying the North is to be blamed, the periphery is to be blamed, the migrants are to be blamed. Obviously
this is incapacitating Europe, we are losing the potential we have."
Yesterday, Greek government sources told Reuters the troika inspectors were pressing Athens to slash public spending further to make up for a likely shortfall in revenue this year.
"They are forming an opinion that there are difficulties," said one senior government official who requested anonymity. "They are concerned there is a high risk revenue targets will not be met and are pressing for more spending cuts."
At stake is a €12 billion tranche of aid due next month and key to paying €13.7 billion of immediate funding needs. Without it, Greece could effectively default.
A senior EU source involved in crisis management in the euro zone debt crisis told Reuters Greece would have to commit itself to taking additional measures this year to ensure it meets its targets.
He also said European partners needed to see a breakthrough in Greece's stalled privatisation programme so the country can raise more funds by offering those assets, or securitised future revenues, as collateral for future loans.
Euro zone finance ministers would receive the inspectors' report at the end of May and were likely to take decisions on the next steps for Greece in June or more probably July, given the time needed to secure agreement among multiple stakeholders and ensure broad political support in Greece, he said.
Greek ministers have acknowledged that Athens is unlikely to be able to return to capital markets to raise €27 billion next year, as foreseen in its EU/IMF programme, or a further €38 billion in 2013.
The EU source said most of the funding shortfall would have to be raised through collateralising or securitising the proceeds of privatisation, with the rest coming from the euro zone and the IMF.
Greece is seeking a further extension of maturities on its €110 billion in rescue loans and a further cut in the interest rate on euro zone lending, which was reduced by one percentage point in March.
Reuters
