Europe would face grave economic consequences and the euro would be destabilized if the attempt to bail out debt-challenged Greece fails, Austria's finance minister warned said Tuesday.
Josef Proell also cautioned that it wouldn't be tolerated if Greece watered down the austerity measures needed to fulfil the terms of the aid package.
"These are decisive days for Europe and Austria," Proell said in a statement after a government meeting, urging the Greek government to put across a convincing argument to its citizens on the necessity of painful budgetary discipline.
"In view of the demonstrations in Athens, my patience, and that of Europe in general, is stretched to the limit," Proell said. He also underlined, however, that he sees the proposed bailout of Greece as the only viable path forward.
"It's wiser and better to jointly offer aid [to Greece], since the alternative would be irreparable damage to Europe and the euro zone," the finance minister said.
He estimated the potential economic damage to Austria, should the aid deal fall through, to be at least EUR5 billion, and quite possibly in the two-digit billion euro range.
He said the deal is also essential to maintaining the stability of the euro.
"The euro is a valuable and indispensable part of the European economic development, and it's important to jointly work for its stabilization," Proell said.
On the weekend, the European Union and the International Monetary Fund agreed a EUR110 billion, three-year austerity and reform loan package to help Greece meet its debt maturities.
Earlier Tuesday, Greek civil servants walked off the job on the first day of a 48-hour strike to protest against government austerity measures and ahead of a nationwide general strike Wednesday that is expected to paralyze the country.
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