EU to propose instrument for aid to Greece

BRUSSELS, March 19 (Xinhua) -- President of the European Commission Jose Manuel Barroso said on Friday that the Commission is ready to propose an instrument for coordinated assistance to Greece.

"Such an instrument would be constituted by a system of coordinated bilateral loans and would be compatible with the no bail-out clause and with strict conditionality," Barroso said in a statement issued on Friday night.

But he said that creation of the instrument does not mean it would be activated immediately.

"Our objective is an instrument designed within the euro area, with conditions and management established by the euro area and its institutions," Barroso said.

"We cannot prolong any further the current situation," he said, "I urge the EU's leaders to agree on this instrument as soon as possible."