The leaders are also asked whether they feel they made any mistakes with Greece's first rescue package.Lagarde says that this second deal has a much stronger focus on competitiveness, including labour market reforms, to support economic growth in Greece wherever possible.It's not clear whether this is the 'permanent troika presence in Athens' which the Dutch finance minister demanded.Christine Lagarde, head of the IMF, told the press conference that she "personally welcomed the agreement", which would give Greece the freedom to restore its economic competitiveness.The new report into Greece's debt sustainability, which leaked last night (and which the Financial Times runs on its front page today) has now been uploaded to the internet.As blogged last night, the analysis - produced by Greece's troike of lenders - warns that Greece's macroeconomic outlook has "deteriorated significantly", meaning it cannot hit its former targets.Olli Rehn also acknowledges that mistakes were made in the past, saying the the eurogroup underestimated the economic challenges facing Greece, and its "weak political unity".
In response, Lagarde reply that the official communique refers to the IMF making a "significant contribution.... In this case, we will not know until the second week of March, when the IMF board decides how much to provide.Olli Rehn also told reporters in Brussels that it "should be possible' to combine the resources of the European Stability Mechanism (the new European bailout fund), and the remaining funds within the European Financial Stability Facility (the current one), to form a "stronger firewall". Jean-Claude Juncker invited the media to 'enjoy their breakfast'.Will that firewall have total resources above €500bn, the previous maximum? After the overnight drama, I'd be surprised if many of them could get much food down.It is planning to hold elections once the details of the new agreement have been voted through the Greek parliament.Finance minister Venizelos also declared that the package should end fears that Greece will exit the euro, arguing the Greeks should "bring back your money to Greek banks".It also appears that the Athens parliament plans to pass laws tomorrow to force losses onto bondholders who decline to take part in the 'voluntary' scheme.