Socialist Leader George Papandreou leaves the Prime minister's office early Thursday, Feb. 9, 2012. Leaders of the three parties backing Greece's coalition governments have objected to demands by Greece's creditors for substantial cuts in supplementary pensions and have left Prime Minister Lucas Papademos to negotiate with them. (AP Photo/Petros Giannakouris)
Socialist Leader George Papandreou leaves the Prime minister's office early Thursday, Feb. 9, 2012. Leaders of the three parties backing Greece's coalition governments have objected to demands by Greece's creditors for substantial cuts in supplementary pensions and have left Prime Minister Lucas Papademos to negotiate with them. (AP Photo/Petros Giannakouris)
Greek Prime Minister Loukas Papademos enters the meeting room at Maximos mansion in Athens on Wednesday Feb.8, 2012. After three days of delays, Greek coalition leaders began crucial debt talks Wednesday with the prime minister to review a draft deal on steep cutbacks demanded by creditors in return for a euro 130 billion ($170 billion) bailout. (AP Photo/Orestis Panagiotou, pool)
The ancient Acropolis hill with the Parthenon temple is illuminated above the city of Athens as at the background is seen the Saronic gulf on Wednesday, Feb. 8, 2012. After three days of delays, Greek coalition leaders began crucial debt talks Wednesday with the prime minister to review a draft deal on steep cutbacks demanded by creditors in return for a 130 billion euro ($170 billion) bailout. (AP Photo/Petros Giannakouris)
From right to left, Greek Prime Minister Loukas Papademos, Leader of the Socialist Party PASOK George Papandreou, leader of the conservative Party New Democracy Antonis Samaras enter the meeting room at Maximos mansion in Athens on Wednesday Feb.8, 2012. After three days of delays, Greek coalition leaders began crucial debt talks Wednesday with the prime minister to review a draft deal on steep cutbacks demanded by creditors in return for a 130 billion euro ($170 billion) bailout.(AP Photo/Orestis Panagiotou-pool)
Greek Prime Minister Loukas Papademos enters the meeting room at Maximos mantion in Athens on Wednesday Feb. 8, 2012. After three days of delays, Greek coalition leaders began crucial debt talks Wednesday with the prime minister to review a draft deal on steep cutbacks demanded by creditors in return for a 130 billion euro ($170 billion) bailout. (AP Photo/Yiorgos Karahalis-pool)
BRUSSELS (AP) ? The European Union's economic affairs commissioner says the eurozone is seriously considering forcing Greece to set up a separate fiscal account that would be dedicated to repay its debts as part of a new bailout.
Such an account, which could take in the new bailout money or even part of Greece's general government revenue, would be an unprecedented intrusion into the fiscal affairs of a sovereign state.
It was proposed by Germany and France earlier this week.
Under that proposal, revenues would go first to servicing Greece's debt before paying for government services.
Olli Rehn said Thursday such a separate account, which was proposed by Germany and France earlier this week, was "one relevant possibility of reinforcing surveillance and ensuring effective implementation of the (bailout) program."
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
BRUSSELS (AP) ? The chairman of the meeting of eurozone finance ministers says Greece has to identify an extra euro325 million ($432 million) in savings for 2012 in order meet the terms of a much-needed bailout.
Jean-Claude Juncker said Thursday the Greek parliament will also have to pass the full package of cuts and reforms on Sunday and party leaders have to make clear that they will back the measures after elections.
He said if those conditions are met, the eurozone finance ministers could give the green light to a bond-swap deal with private creditors to cut Greece's debt by some euro100 billion at their next meeting Wednesday.
The austerity measures and the debt swap deal are key conditions for a euro130 billion bailout that Greece needs to avoid default.
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