Austria Threatens to Halt Greek Aid Transfer on Deficit Concern

Austria threatened to block its share of the next transfer of aid funds to Greece unless the government meets deficit-cutting goals agreed upon six months ago with the European Union and International Monetary Fund.

Austrian Finance Minister Josef Proell said in Vienna that he lacked assurances from Greece to commit to the payment. He toned down his remarks later, telling journalists in Brussels that Austria was prepared to meet its pledge to Greece and that Greece was “on a good path.”

“We are getting indications that the Greeks can’t stick to their plan in a sufficient manner, in particular on the revenue side,” Proell said according to a government e-mail that confirmed remarks made after a Cabinet meeting today. “The data we have at the moment doesn’t give any reason to approve the December tranche from the Austrian point of view.”

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Posted in * Economics, Politics, * International News & Commentary, --European Sovereign Debt Crisis of 2010, Austria, Economy, Euro, Europe, European Central Bank, Greece