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Fresh money would be provided under "strict conditionality," Mr. Juncker said after a meeting with the Greek prime minister, George A. Papandreou.
If action is needed to do so, "not just taxpayers but also private creditors would again be involved in helping Greece, but under strict conditionality," he said.
In effect, that means that a nation could negotiate a program with the European Union under "strict conditionality," making it possible for the bailout fund to buy bonds issued by that government.
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The granting of any required financial assistance under the mechanism will be made subject to strict conditionality".
For "strict conditionality" read severe budget cuts.
If they want more bailouts from the International Monetary Fund, they are going to have to submit to strict conditionality.
Draghi stressed the "strict conditionality" of the program in a speech in Frankfurt yesterday as he seeks to assuage German concerns.
The way to go about it is for the EU to continue applying strict conditionality, as with all other candidates for accession.Appeasement never worked.
The bank would buy bonds only if a country accepted strict conditionality and international supervision, he declared, and would stop the support if a government veered off course.
He then repeats his point about needing a two-legged approach: support to bring down borrowing costs, and strict conditionality - ie, a commitment to economic reforms.
resources only after a long wrangle — and only after scaling back the original request from $600 billion, as well as insisting on strict conditionality before the money is ever disbursed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com