Speech by President of the Government at plenary session of Lower House of Parliament to report on Conclusions from European Council meeting on 25 and 26 June 2015

Mr Speaker, Honourable Members of Parliament.

I appear before the plenary session of the Lower House to report on the content of the European Council held on 25 and 26 June in Brussels. That is what is recorded in the agenda to this extraordinary plenary session of the Lower House, but, as there have been a total of four meetings of Heads of State and Government of the Eurozone or of the European Union as a whole to tackle the crisis in Greece, I will also refer, if the Honourable Members will allow me, to the development of talks and to the agreement, which we hope will be definitive, reached last weekend.

We will start with the issues of the Council meetings held on 25 and 26 June and we will do so with a mandatory acknowledgement: the European Council expressed its gratitude to Jacques Delors, the former President of the European Commission for his noteworthy contribution to the development of the European project and decided to bestow upon him the title of "Honorary Citizen of Europe".

As the saying goes, "es de bien nacidos ser agradecidos" [it is only right and proper to be grateful], and the people of Europe, in general, and the people of Spain, in particular, owe a debt of gratitude to Jacques Delors. To date, the title of "Honorary Citizen of Europe" has only been bestowed on two other people: Jean Monnet, one of the founding fathers of what is today the European Union, and Helmut Kohl, the former Chancellor of the Federal Republic of Germany, of whom it is not necessary to stress his entitlement to be a worthy recipient of this acknowledgement. To these two, we now add Jacques Delors, one of the people of whom it can be said that he has left an indelible hallmark. His contributions as President of the European Commission in such important issues as the creation of the Internal Market, and even the birth of our single currency are indicators of a before and after in the history of the EU.

Just a few days ago we celebrated the 30th anniversary of the signing of the agreement by which Spain joined the European Community: Jacques Delors was the President of the Commission at that time. During his entire career, he showed himself to be a great friend of Spain and of the Spanish people.

Honourable Members,

Let us now move on to the issues that concerned the Council. A significant part of the work was given over to the migratory crisis in the Mediterranean based on the principles agreed at the extraordinary European Council meeting on 23 April and contained in the European Migratory Agenda presented by the Commission a short while ago.

It is absolutely necessary to stress, and I did this to my European colleagues, that the capsizes and deaths that have taken place in the Mediterranean constitute a true human tragedy regarding which the European Union must provide a supportive response based on the principles of solidarity and shared responsibility, with an overriding goal of avoiding a repetition of tragedies such as those that have taken place in the Mediterranean.

The EU must get fully involved in managing this crisis and it must do so with ambition, common sense and maximum effectiveness. Anything else would be inadmissible and go against the founding spirit of this common project that we call the European Union.

During the course of the meeting, and in light of the request made to me by various members of the European Council, I had the opportunity to outline Spain's experience in the issue of managing migratory flows. This experience was considered as a model that should be followed by the rest of Europe.

A decisive boost has been given to agreements to establish employment migration channels; high-level contacts have been established together with an ongoing dialogue with the authorities of the countries where migratory flows originate; training and employment programmes have been set up for those young people that form the main candidates for illegal emigration and whose departure, due to a lack of opportunities, deprive their countries of development possibilities; migratory cooperation instruments were set up, including a good number of readmission treaties; the participation of both Frontex and the financing of European programmes designed to fight illegal immigration have been increased; and multilateral dialogue and cooperation forums have been created, such as the Rabat Process, which seek to foster the organisation of legal migration, combat illegal migration and the link between migration and development.

In light of this experience, the European Union has committed to present proposals and initiatives to boost cooperation with countries of origin, strengthen the role of Frontex and develop a relocation and re-settlement system for those people in need of international protection.

This is an issue that has been under discussion for some time now. The European Council on 24 and 25 October 2013 tackled this issue following the capsizes off the coast of Lampedusa on 3 October that same year. I then had the opportunity to present the Council with a series of proposals to encourage the European Union to be more pro-active in this area. Subsequently, on 23 April this year, an extraordinary European Council meeting was held to tackle the humanitarian drama unfolding in the Mediterranean Sea off the coast of Libya.

As a result of the experiences and the implementation of the agreements adopted to date, that Council adopted a series of measures, by way of Resolution, as an immediate response, such as the relocation from Italy and Greece to other Member States of the European Union of some 40,000 people from Syria and Eritrea in clear need of international protection, on a temporary and exceptional basis.

By consensus, the Council will adopt a formula that gives form to these relocations in July. It has also been decided to grant additional emergency financial assistance to the Member States most affected and to resettle some 20,000 people who are also in need of international protection from third countries to the European Union.

Once again, I have conveyed to the Council that it can always count on the involvement and support of Spain to put a stop, on an emergency basis, to this intolerable loss of human life, and that this is a European problem that requires a European solution.

Honourable Members,

We will now move on to the Conclusions from the European Council contained in the second point, which affect security and defence issues, a debate in which the Secretary General of NATO also took part.

We agreed to boost the new Internal Security Strategy and review the Global Strategy on Foreign Policy and Security. These must both be closely coordinated since security is indivisible. Moreover, we have underlined the need to take steps so that the European Union's budget guarantees sufficient financing to cover this area, which will enable us to strengthen our capabilities in order to effectively prevent and manage the new forms of crisis we are now facing.

If we have learned anything in these last few years it is that internal security and foreign security are closely interrelated and that all EU Member States are clear targets of terrorist barbarities. And in consequence, in light of this new threat, it would be suicidal to seek to individually defend each of our countries.

Honourable Members,

The third part of the Conclusions from the Council is given over to economic issues under the title, "Employment, growth and competitiveness". In this area we tackled three issues.

- Firstly, we backed the Specific Recommendations to Member States within the framework of the European Semester.

- Secondly, the Presidents of the European Commission, the European Council, the Eurogroup, the European Central Bank and the European Parliament presented us with its report on proposals to complete the design of the Economic and Monetary Union.

- Thirdly, we tackled the European Strategy for the Development of the Digital Economy.

I will briefly refer to each of these issues.

The European Semester. In relation to the European Semester, as you are aware, the European Councils in June discussed the Specific Recommendations addressed to each of the Member States. This was the last step in the process to coordinate the economic policies of the Semester.

The Recommendations addressed to Spain this year reflect the fact that the situation in our country has radically changed and that, within the Eurozone, it is the country enjoying the most growth and creating the most net employment. For example, just a couple of years ago, Spain was on the verge of being subject to a disciplinary proceeding as a result of the very serious imbalances accumulated. However, this year only four Recommendations have been made to Spain, compared with nine in 2013 and eight in 2014, and the Commission considers that our imbalances "are no longer excessive". This is the result of an intense process of reforms and a major effort on the part of Spanish society as a whole.

As regards the report on the future of the Economic and Monetary Union, drawn up by the so-called Five Presidents group, Spain has been heavily involved in its preparation having presented both ambitious and specific proposals.

The Monetary Union must take steps towards integration so that the Euro can function appropriately. To this end, we must push through a process, that has already been delayed, which leads us towards a greater degree of convergence of our national economies and creates the necessary corrective measures to tackle different cyclical situations in the various Member States. In this regard, it is necessary to make progress in five areas:

- A more integrated Internal Market in areas such as energy, retail banking and the digital agenda.

- Labour Mobility. In particular, it is important to ensure the portability of rights acquired by workers, such as unemployment benefits, and guarantee the full recognition of professional titles and qualifications, throughout the EU.

- The coordination of economic policies to avoid the accumulation of fiscal and external imbalances that endanger the Euro. To this end, new competitiveness indicators are necessary, such as those that existed in the Maastricht process to enable Member States to apply economic policies that are compatible with the single currency.

- Fiscal Union, with the creation, sooner rather than later, of a budget for the whole of the Eurozone.

- And greater Political Union to guarantee that the system of governance agreed for the Eurozone respects democratic legitimacy in decision-making.

In order to make progress in this integration, Spain advocates a gradual but continuous process based on criteria of convergence.

Many of the ideas proposed by the Government of Spain have been included in the report of the Five Presidents, to which end I would like to express my satisfaction. Thus, for example, the report proposes the establishment of a process of gradual convergence based on indicators. This process will lead towards greater fiscal integration and the creation of fiscal capacity for the Eurozone. The Five Presidents consider it necessary to strengthen monitoring of competitiveness as an essential element to guarantee the stability of the Euro whilst acknowledging the importance of making progress on the internal market and labour mobility.

The challenge now is for the report of the Five Presidents to be agreed on as soon as possible, so that the measures contained therein can be implemented immediately.

Within this economic heading, I would also like to mention, as I pointed out earlier, the Digital Agenda.

We consider that this is an area where action is fundamental in order to ensure economic growth, employment and innovation through a productive model that takes maximum advantage of the opportunities offered by digital technologies. We are one of the countries that advocates long-term ambition and vision for this agenda and, with the aim of fully benefitting from this technological revolution, Europe needs to build support infrastructures and contribute towards the digitalisation of industry to tackle market fragmentation. In this goal, as with the rest of the Europe 2020 initiatives, both the European authorities and national authorities must coordinate their efforts to achieve the appropriate synergies.

The Internet and Information and Communication Technologies now pervade the whole economy. The global economy is increasingly a digital economy and the digital economy can be an important driver of growth, innovation and quality jobs.

In this new reality, the European Union must not be left behind. It must position itself strategically and promote the creation of wealth at all levels of the digital value chain, from the content industry to the development of digital platforms and the roll-out of networks. To achieve this, we must make progress on the integration of the European Digital Market whilst guaranteeing the protection of consumer rights and the appropriate remuneration of the creators of content.

Hence, at this European Council we undertook to take steps in different areas of the Digital Agenda, as set out in the Conclusions. Specifically, the European Union will take steps to:

- Eliminate barriers to the online trade of goods and services. The aim is for consumers to gain access, under equal conditions, to online goods and services sold in another Member State.

- Guarantee portability and facilitate cross-border access to content, guaranteeing a high degree of protection to intellectual property rights. This was included in the Conclusions upon a proposal from Spain. Furthermore, in this area the European Union will oversee the protection of cultural diversity.

- Promote the development of digital competencies among citizens. It is fundamental for our citizens to have training and the necessary tools to take maximum advantage of the benefits offered by the digital economy. This was also introduced in the Conclusions upon a proposal from Spain.

- Take steps towards normalisation. The aim is for Europe to develop its own standards, those that are best suited to our market and our industry. This is an issue that we discussed at the European Council in October 2013. At that time, the European Union decided to boost the digital market and develop the Telecoms Single Market.

This commitment has been materialised through a new Regulation which takes certain important new steps:

- Firstly, roaming charges are eliminated as from June 2017. In other words, European citizens will not have to pay a surcharge for their calls or messages when they travel within the European Union. As from April 2016, charges will be lower as a result of the introduction in the Regulation of limits on charges, both for voice calls and for SMS messages and for data services.

- The Regulation also introduces strict rules to guarantee the neutrality of the network, that is, to ensure that citizens can freely access all network content under the same conditions without platforms discriminating or prioritising content on unjustified grounds.

Honourable Members,

I cannot stress this issue enough. Unfortunately, in Europe we are way behind on this issue and it is urgent to step up our pace. Allow me to now repeat a few words here that I mentioned in an appearance in this House back in October 2013.

They are the following: "Honourable Members of Parliament, as you are aware, now, in this year 2013, more than half the books that are published in the United States are not published on paper, but in a digital format. This is one example of many of the effects of the so-called digital revolution and the best evidence of this is that, as you will have read in the press a few days ago, three of the four largest companies in the world by stock market capitalisation are digital companies: Apple, which holds first place; Google in third place and Microsoft in fourth place. 40% of new jobs created in the United States are jobs in the digital economy; in contrast, in 2011, some 300,000 job offers in this sector could not be covered in the European Union in this sector and, unless this trend is reversed, from now to 2015 - I said back in 2013 - there could be up to 900,000 uncovered jobs. Europe is not playing the leading role to which it should aspire in this digital economy. The main companies are North American. Digital jobs are fundamentally created close to the decision-making centres of these large digital companies or in emerging economies that have a well-trained digital talent base, such as India. It is clear that Europe must acquire digital status".

Mr Speaker, Honourable Members of Parliament,

Let us now move on to the issue of Greece. If I had to explain in just a few words the situation that talks between the Greek Government and the European institutions and the rest of the Member States of the Eurozone has reached, it would be enough simply to read the first paragraph of the Declaration of the Euro Summit on 12 July. It states, "The Euro Summit highlights the crucial need to re-establish a relationship of trust with the Greek Government as a preliminary condition to any future potential agreement on the new programme of the European Stability Mechanism (ESM). Against this backdrop, the assumption of responsibilities by the Greek Government is key and its successful application will be a consequence of political commitments".

Re-establishing trust; to put it another way, returning to a prior situation that had been lost: mutual trust between the Greek Government, the institutions and the rest of the countries that make up the Economic and Monetary Union. Overcoming mistrust generated over recent times is the challenge we are trying to overcome. That is what was unanimously agreed.

Last Sunday's Council meeting served to set a clear and precise road map that will serve as a guide to exit the labyrinth that these talks had wandered off into. I believe that it is important to highlight this: a clear process has been defined, with specific content and temporary goals to verify this. This is not a memorandum of understanding; it is a list of specific measures.

As regards our position, Spain has always had a constructive attitude and at all times it has been in favour of maintaining Europe's support for Greece. This is nothing new. We have been in this position for more than five years now, and this is true, within a framework of mutual loyalty: European assistance demands responsibility from the Greek Government by way of consideration and there can be no doubts over its intention to meet those commitments it has assumed.

It is not necessary to spell out the latest events that you are all aware of, but the result of everything that took place is that:

- Firstly, the economic situation in Greece has very quickly deteriorated in a matter of months. It has gone from a growth forecast of almost 3% for this year to a decline of between at least -2% and -4%. The situation of the banks has also worsened, in addition to the problems that the people of Greece are having, who are victims of capital controls, without free access to their own money.

- Secondly, the unilateral actions taken by the Greek Government have also caused a tremendous deterioration in trust among its partners and it is absolutely essential to rebuild this basis of political trust.

We must act in search of three goals:

- Tackling the urgent financing needs of the Greek economy,

- Laying the bases that allow this situation to be resolved as soon as possible and return to a situation of growth and job creation, and re-establishing confidence in the Greek Government's commitment to the Euro and to the rules of the single currency.

We have observed - we will see what happens later - a radical change in the attitude of the Greek Government without which it would not have been possible to reach an agreement. This change has opened up the possibility of negotiating a new bailout, the amount of which has considerably increased as a result of the harm done to the Greek financial system during these weeks of restrictions.

At any event, the possibility of negotiating a third programme of assistance is opened up, provided that Greece offers a very strong commitment to uphold what is agreed.

Honourable Members,

We have held four summits over the last three weeks to discuss the situation of Greece: an extraordinary Euro Summit on Monday 22 June, a European Council on 25 and 26 June; an extraordinary Euro Summit on Tuesday 7 July, and an extraordinary Euro Summit on Sunday 12 July. Four summits in just three weeks, with a punishing schedule imposed on all of us, and five months have passed, from the end of January to the end of June in which it has been very difficult to describe the negotiating strategy of the Greek Government.

Although it is almost telegraphic, we should recall the main aspects of this negotiation process:

- Prior to the elections in January 2015, Greek had a financial assistance programme in place in which there were 7.2 billion euros pending payment to Greece and certain conditioning elements to be complied with, that is, those measures that countries agree to implement in exchange for receiving this financial assistance. These measures had the aim of channelling economic policy and setting the country back on to the path of growth and in to a situation whereby it can receive financing on an ordinary basis by issuing debt in the markets.

- Support for Greece had enabled the Greek economic to return to growth - it posted growth in 2014 - and with forecasts for 2015 of further economic growth of close on 3%, as I pointed out earlier.

- The arrival of Syriza to power resulted in a radical change in the situation. The new government proposed not to comply with the programme in force and to bring many of the reforms undertaken to a halt. The uncertainty created paralysed economic activity and mass withdrawals of bank deposits started to be recorded from the Greek banks. This showed how unconvinced many Greek citizens were with the new situation.

- Right from the outset, the position of all of the countries in the Eurozone has been clear. Europe has always been willing to support Greece, but within the legality of EU law that we must all uphold, and within a framework that is compatible with the economic policy decisions of the Monetary Union. And that has also been, naturally, the position of the government I head up.

- Hence, back in February, the Eurogroup reached an agreement of minimums. The Greek Government had to present alternative measures to achieve a similar effect to the programme in force and, in exchange, the 7.2 billion euros pending would be paid out. And an extension of four months was agreed that was to finalise on 30 June.

- Based on this, I repeat, minimal commitment, the European Central Bank has been supporting the Greek banks. The European Central Bank activated its emergency line of liquidity for Greece. This line of credit, which can only be used in the event of banks undergoing temporary liquidity problems, has helped the Greek banks avoid bankruptcy and the loss of savings and deposits of many Greek citizens.

- Hence, the situation was already clear back in February: the Eurozone offered support and flexibility; in exchange, it asked Greece to respect the rules and implement a sound programme of reforms that would serve to correct the country's imbalances and generate sustainable growth that would allow it to return to receive financing under normal conditions in the markets.

- However, in those four months the Greek Government did not present any reform proposals which, within the framework of the flexibility of the agreement in February, would have enabled it to meet its commitments and guarantee the payout of the financial assistance.

- We then held an extraordinary Euro Summit on Monday 22 June, at which there was a more constructive attitude on the part of the Greek Government. Negotiations continued during these last few days of June.

- However, and despite the progress made and the fact that positions between the parties were very close, in the early hours of 27 June, the Greek Government decided to call a referendum. All of the opposition political forces, except the neo-fascist party Golden Dawn, voted against calling this referendum in the Greek Parliament. It is still not totally clear what question was asked of the Greek people. What the government of Tsipras presented for their consideration was a series of documents relating to a negotiation that was still under way and which, moreover, corresponded to a programme which, based on a decision from the Greek Government, had already expired.

- In short, in light of the lack of commitment on the part of the Greek authorities, on 30 June, the financial assistance programme expired without it having been possible to reach an agreement.

- Without the protective umbrella of an assistance programme and with increasing withdrawals of deposits, the Greek Government was forced to pass a decree on the closure of the banks and impose capital controls. Citizens were restricted to withdrawing 60 euros per day and Greek pensioners had to queue to collect part of their pensions. And this, while still enjoying the support of the European Central Bank. If the European Central Bank had withdrawn its emergency line of credit, the Greek banks would have gone bankrupt.

- The result of all this has been very negative for the people of Greece. From expected economic growth of around 3% for 2015, the economic situation in Greece has clearly deteriorated; as I mentioned before, it has gone from a positive 3% to between -2% and -4% for 2015.

- In these somewhat complex circumstances, for the want of a better expression, we once again held an extraordinary Summit on 7 July. There we agreed on the steps to be taken. Following the expiry of the second programme, maintaining European aid meant granting a new programme - the third programme that Greece had already rejected, as you are all aware - of financial assistance from the ESM, pursuant to the rules of that institution.

- On 8 July, the Greek Government presented the ESM with an official request for a third programme and on 9 July, a detailed proposal of reforms to be implemented in order to receive financing. This is a three-year programme of macro-economic adjustments tied in to a specific set of conditions. The Greek request included specific measures to be applied immediately which were very similar to the proposals that had been under discussion prior to calling the referendum.

- This proposal was backed by a majority of the Greek Parliament, with the support of the main opposition parties (New Democracy, To Potami, PASOK and ANEL) despite 17 MPs for Syriza voting against it. The new-fascist party Golden Dawn and the Greek Communist Party also voted against the proposal.

Henceforth, and according to the provisions established by the ESM Treaty, the following is required to approve the programme:

- A detailed evaluation by the institutions of the country's financing needs, the sustainability of its debt and the risks for the financial stability of the Eurozone.

- The unanimous agreement of the Eurogroup to start negotiations. Once this agreement is reached, a Memorandum of Understanding (MoU) must be negotiated, which must be agreed by the Eurogroup for the definitive approval of the programme.

- Moreover, there are six countries that require approval from their national parliaments in order to undertake these procedures: Germany, Finland, Austria, Holland, Estonia and Slovakia. Honourable Members, I can announce to you that while this procedure is not mandatory in our country, it is my intention to bring to this House for debate, and, as the case may be, its approval, the Spanish position on the programme, because a great deal of resources are being asked for to be guaranteed by Spanish taxpayers. I can also announce to you that I am fully predisposed to conclude this issue in the best manner possible.

Honourable Members of Parliament,

The evaluation carried out by the institutions show just how much the situation has deteriorated in these last few months:

- The public debt, which was sustainable at the end of 2014, is now unsustainable and this is due to the relaxed policies applied over the last few months, which has caused an increasing economic decline.

- Now the banks need 25 billion euros to continue operating. In addition to the significant withdrawals of deposit, non-performing loans and doubtful debts have also increased. Doubtful debts amounted to 36% of all loans at the end of the first quarter of 2015 while non-performing loans amounted to 8%.

In light of the foregoing, Greece's financing needs have significantly increased. The institutions estimate that a new programme is now necessary for a sum of between 82 and 86 billion euros. Prior to the expiry of the second programme and the closure of the banks, the financing needs estimated by the International Monetary Fund were 52 billion euros.

We arrived at the Eurogroup meeting on Saturday 11 July and to the Euro Summit on the Sunday in this situation. As I mentioned, the position of the Spanish Government has remained unchanged: we are still prepared to support the people of Greece, within the framework of European rules. That is also the position of the rest of the partners in the Eurozone.

But the Greek Government has brought about a breakdown in trust and the first thing it must do is recover the trust of the rest of its European partners. That is essential.

We have paid Greece close attention over recent years and that has led to a major effort being made, particularly for countries which, like Spain, were not going through easy economic times themselves.

Honourable Members,

Greece has already received more than 200 billion euros in loans under very favourable conditions. That is more than its GDP. And it now needs a further 80 billion euros.

This support has not come via loans. Back in 2012, the Eurozone countries approved restructuring measures that enabled the Greek public debt burden to be alleviated. This included extending term deadlines, lowering the interest rates and a 50% haircut on the debt in the hands of private creditors, which meant a reduction of 100 billion euros for Greece.

Greece was granted a grace period for servicing its debt of 10 years and of 30 years on repaying the principal.

Moreover, back then the European partners undertook to adopt new measures in the event that this was necessary provided that Greece also met its reform commitments. The Eurozone remains prepared to honour this commitment provided that Greece implements the measures contained in the MoU yet to be agreed on and not before the successful completion of the first revision.

Sunday's agreement completely rejects nominal haircuts on the debt.

Honourable Members of Parliament,

At the Summit on 12 July, we agreed to the following:

• Greece will immediately pass legislation containing a series of reform measures in line with the terms offered in its letter requesting the programme on 8 July. The following are some of those measures:

By today:

- VAT reform.

- Reform of the pension system to make it sustainable.

- Full application of the European commitments on the issue of budgetary stability (Fiscal Compact). Greece will adopt, moreover, a semi-automatic law on spending cuts in the event of any deviation from the budgetary targets.

Prior to 22 July:

- Reform of the judicial system to speed up proceedings and reduce costs.

- Full application of the measures adopted at a European level to regulate bank resolutions and re-structurings.

• Once the first reforms have been approved - which means those of today - by the Greek Parliament, the Eurogroup will be in a position to agree to the start of the negotiations for the third programme.

This third programme must include the participation of the International Monetary Fund. This has been a condition under all the macro-economic adjustment programs approved by the ESM. Hence, the Greek Government has undertaken to officially request support from the International Monetary Fund as from March 2016, which is when the institution's current programme expires.

As regards the conditions for this new programme, the deterioration of the situation over recent months must be taken into account and hence the greater financing needs. This implies that sound commitments to undertake reforms will be necessary on the part of the Greek authorities in key areas for the success of an adjustment programme, i.e. pension system, product markets, management of the energy system, labour market and the financial sector.

The ultimate aim is to return Greece to a path of sustainable growth and for it to recover access to the markets as soon as possible.

Moreover, the Greek authorities have undertaken to speed up the implementation of their privatisation programme. As part of the agreement, Greek assets for a value of 50 billion euros will be transferred to an independent fund. The sale of these assets will serve to generate resources to be employed to tackle bank re-capitalisations, reduce debt and finance an investment programme for a sum of 12.5 billion euros.

Working methods with the institutions will also be normalised. In accordance with the rules of the European Stability Mechanism for cases of financial assistance programmes, the Greek Government will consult the institutions regarding any legislative initiative in important areas for the success of the programme. And as part of this commitment, the Greek Government will halt those reforms introduced in recent months that go against the aims of the programme or will approve equivalent measures. As was approved by the Greek Parliament, the Humanitarian Crisis Act will be exempt from this.

Honourable Members,

This must all serve to restore the trust between the Greek Government and its partners in the Eurogroup and to lay the foundations for a new programme which will definitively put the Greek economy back on the right path and lead to it enjoying growth which it has recently lost.

Having said all this, the Eurozone countries are aware that Greece has immediate financing needs. It must settle major payments with the European Central Bank in July, next Monday, and in August it must resolve the late payments to the International Monetary Fund and tackle the situation of the banks after spending the last two weeks closed and the situation of the people suffering from capital controls.

The solution to this problem is not easy. There is little time. The first payment, as I have just pointed out, is due on 20 July to the European Central Bank for more than 4 billion euros. Moreover, Greece defaulted on a debt payment to the International Monetary Fund for 1.6 billion euros. Once the Greek Government allowed the second programme to expire, there were no mechanisms established to mobilise the resources necessary quickly. That is why at the Euro Summit we agreed to give the Finance Ministers a mandate for them to discuss these issues on an urgent basis.

I would also like to say that the Commission has undertaken to work with the Greek authorities in order mobilise some 35 billion euros in the next three to five years to help support investment and economic activity. As part of this support package, exceptional measures will be taken to allow Greece to better harness resources allocated through the structural funds. Greece will also have opportunities to finance investments under the Juncker Investment Plan.

In conclusion, Honourable Members, at this Euro Summit, we have laid the foundations to ensure a sound and lasting agreement in support of Greece. It now falls to the Greek Government to meet its commitments and recover the trust of its European partners. A lot of time has been wasted over these last few months and the economic situation in Greece has considerably worsened. Those most prejudiced, at the end of the day, have been the Greek people themselves. I believe that it is now time for the Greek Government to show both sensitivity and responsibility.

Honourable Members,

This has been a sad story which, in the end, may turn out better than what we could have imagined just a short time ago. This is not the result of a miracle but rather due to the recovery of common sense and the recognition of a stark reality. It will be difficult to return to the levels of trust that have been lost, but this can be achieved. It will be more difficult still to avoid the frustration of a part of the Greek people who, induced to reject certain proposals a little more than a week ago, have now been forced to accept other, more demanding, proposals, because the situation is now much more serious. This will be difficult, but it can be overcome.

What I am sure of is that the Euro, our common currency and the best symbol of a project under way, will be further strengthened by this test. It will not be the first time in the process of European integration. Back in 1993, the European Monetary System was in crisis, out of which the Euro was created in response. Between 2010 and 2012, we suffered the hardships of a sovereign debt crisis in the European periphery, and the response was to increase the powers of the ECB and implement Banking Union.

This has been done and we will do it again if necessary. We will meet our political commitments that enable us to reach new levels of economic, social and political integration. And this will be, and have no doubts about this, good for Europe and good for those citizens that live there.

That is all. Thank you very much, Honourable Members.