Eurozone ministers: More reforms needed from Greece

Eurozone finance ministers have drafted a statement demanding a greater reform effort from Greece, if it is to receive a new bailout, according a report leaked to Reuters on Sunday.

The draft statement was reportedly discussed by the ministers late on Saturday, before they resumed talks on Sunday.

"The Eurogroup welcomes the assessment by the institutions that the list of policy commitments of the Greek authorities represents a basis to start the negotiations on a new programme. The Eurogroup also agrees with the institutions that the package needs to be significantly strengthened and broadened in order to provide for appropriate conditionality for a possible three-year European Stability Mechanism program," the statement said.

Further reforms demanded by the Eurogroup include:

- Full compliance with the medium-term primary surplus target of 3.5 percent of GDP by 2018, according to a yearly schedule to be agreed with the institutions;

- More ambitious pension reforms;

- On labor markets, undertaking rigorous reviews of collective bargaining, industrial action and collective dismissals in line with the timetable and the approach suggested by the institutions. Any changes should be based on international and European best practices, and should not involve a return to past policy settings which are not compatible with the goals of promoting sustainable and inclusive growth;

- Adoption of the necessary steps to strengthen the financial sector, including decisive action on non-performing loans.

The ministers reportedly want further action on value-added tax as well, along with a number of technical proposals.

It is not clear whether the full statement will be made public before the Eurosummit meeting of eurozone leaders on Sunday.