Monday, July 6, 2015

- Greece must show willingness to reform and cuts in pensions – Dagbladet.no

(Dagbladet): While Foreign Minister Børge Brende waiting for UN Secretary General Ban Ki-moon this morning, he had to respond until faced the press on the latest developments in Greece with the people’s no to debt claims from the EU and IMF.

Tip of the iceberg

– A referendum is respected worldwide. But it’s going to be challenging in the coming days. We saw last week people in front of empty ATMs. It’s probably just the tip of the iceberg we have seen, if there is a solution in the coming days, says Brende.

He spoke with EU Vice President yesterday. The attitude of the EU is that Greece has shown little willingness to reform. Brende said that the ball now lies with Greece.

EU states that there has been a lack of willingness of Greece to address fundamental reforms. There is no doubt that Greece has too much debt. They must create new growth and jobs, it is not just talking about reducing benefits.

– Not sustainable

– But there will be a discussion on whether to have a retirement age of 55 years in Greece when the countries of northern Europe for example, retirement age of 67. It’s a monstrous count on the Greek national budget when you have to pay pensions to people under 60 years.

EU awaits Rell’s willingness to reform in Greece. It applies to retirement, tax collection and management of the underground economy. If Greece is willing to open the closet, it may be that the EU is willing to resume talks with Greece, says Brende.

– You say that a retirement age of 55 years is not sustainable in euro area?

– It is not Norway that determine, but these are issues that have been important for creditors. It is a question of the Greek economy can bear such an old age, under 60 years. It must be the sustainability of the economy. In Norway, we have had a pension reform and we persists Us expenditures come, says Brende.



The political consequences

When asked what can happen if Greece exits the euro zone, responding Brende:

– The political implications are huge. I think there is a strong desire that Greece should be part of Europe and the EU. Future challenges related to Greek unilateralism we should not underestimate. As regards the financial implications, as falling stock markets now, but I also think the markets have taken into account a possible negative output, says Brende.

Russia support?

Is there a danger that Russia may gain greater influence in Greece?

– Now I do not think the Russian economy is in such a situation that they can contribute Any financial support package to Greece. But there is no doubt that the southeastern flank of Europe is of great importance to security policy as well. There is a NATO country that also challenges because of the war in Syria, Iraq and the situation in Libya. We see that there is a troubled region. And we need cooperation with Greece ahead, says Brende.

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