Lithuanian government’s approval would be needed for ESM loan to Greece, finance minister says

The minister said that the Cabinet would consult the parliament’s European Affairs Committee before making its decision.

Greece on Wednesday submitted a request for a three-year loan from the ESM, but it did not specify in its letter the amount of financing sought.

“In accordance with our procedure, these decisions would require the government’s approval, but under a tacit agreement, before the government’s approval is obtained, the issue would be presented to the Seimas’ European Affairs Committee and the committee’s opinion would be taken into consideration. Basically, the procedure is the same as that for approving our positions on EU issues,” he told BNS.

According to the minister, the government has said on more than one occasion that Lithuania is ready to show solidarity, but it demands concrete reforms from Greece.

“Our government has stated, on more than one occasion, its position – and it has not changed – that we, as a eurozone member state, are ready to participate in the eurozone’s solidarity mechanisms aimed at dealing with financial threats, even if the recipient country is more economically developed or has higher living standards than Lithuania,” Šadžius said.

“However, in our strict opinion, solidarity cannot be a one-way street. There also have to be concrete commitments from the other state that are acceptable to the colleagues and partners from the eurozone and that are checked and fulfilled 100 percent and in a timely manner,” he added.