European Council President Herman Van Rompuy said Friday it's now up to the Greek government, its parliament and the people to agree the terms of a new program with its lenders.
He was speaking to journalists after meeting Irish Prime Minister Enda Kenny, discussing the debt problems of the euro zone ahead of a summit of European Union leaders next week.
Austerity reforms were "necessary in Ireland and elsewhere" for countries to emerge from the debt crisis, he said.
Van Rompuy said that the EU's new program for Greece will include financing by the private sector. But the program will not cross two "red lines"--that it will not trigger a credit event or lead to a credit default, he said.
"Important decisions have to be taken in the next few days on both sides--Greece and the euro area," he said, calling on all Greek parties to act "in a united manner at this crucial juncture".
Subject to such an agreement, the IMF will be able to disburse the next tranche of aid to the country, Van Rompuy said.
Dow Jones
