Euro Zone Freezes Debt Relief Measures after Tsipras’ Steps on Pensions, Island VAT

eurogroup144Euro zone finance ministers on Wednesday decided to suspend short-term debt relief measures for Greece in response to extra spending on pensions announced by Greek Prime Minister Alexis Tsipras.

“The institutions have concluded that the actions of the Greek government appear to not be in line with our agreements,” said a spokesman for Eurogroup President Jeroen Dijsselbloem, according to AFP.

There is “no unanimity now for implementing short-term debt measures,” the spokesman added.

Earlier on Wednesday, the European Stability Mechanism spokesperson said that, “following the recommendations of the Greek government to spend surplus budgetary benefits to pensions and VAT cuts, the board of EFSF and ESM decided to freeze its decisions on the implementation of short-term [debt easing] measures.”