* Vienna wants collateral too after Greece-Finland deal
* Dutch, Slovakians make similar demand
* Vienna says position in line with euro summit conclusions
(Adds Greek and German sources)
By Sylvia Westall and Gilbert Kreijger
VIENNA/AMSTERDAM, Aug 18 Austria, the
Netherlands and Slovakia said they want collateral on loans to
Greece after Finland secured a commitment, but a Greek official
said this would nullify last month's entire bailout deal.
Although the three countries said on Thursday their
positions were not new and echoed the view of some other euro
zone states, signs of a new EU fracas over Greece's plight
brought incredulous comments from analysts.
"If you want to sell your pact to save Greece then you
should not be fighting about this -- it undermines the
credibility of the package," said Marco Valli, chief euro zone
economist at UniCredit.
The three latest countries to voice their demands and the
Finns together account for around 11 percent of the euro
zone contribution to the new 109 billion euro ($153.5
billion) Greek bailout.
A senior Greek government official said Athens was not
talking about such a collateral plan with countries other than
"We are not discussing this," said the official who
requested anonymity. "Entering such talks would cancel the
entire bailout deal."
The Greek finance ministry declined to comment.
New signs of discord will do nothing to encourage markets
that euro zone politicians are getting on top of the debt
crisis, after a blueprint from the leaders of Germany and France
underwhelmed investors earlier this week.
"With more of Greece's euro zone partners asking for
collateral for their contribution to the second rescue package,
the available pool of money becomes smaller, rendering the
success of the second package more difficult," said Theodore
Krintas at Attica Bank in Greece.
Athens and Helsinki agreed on a deal for collateral this
week -- proposing that Greece offers Finland a cash deposit to
back loans made under the July 21 bailout deal.
Finland has said the deposit plus interest would be
comparable to the contribution it makes to Greece via Europe's
temporary bailout fund.
Francois Cabau at Barclays Capital, said Finland's
insistence on collateral could threaten the bailout.
"By agreeing to (collateral) ... you actually do the
opposite of what you originally set out to do, withdrawing cash
from ... somewhere that doesn't have any," he said.
UniCredit's Valli said: "We should not have so many voices
when Europe really needs to be speaking with one voice, and this
time the situation is even more disturbing because we are
entering a period with lower growth and with the markets going
Euro zone financial experts were meeting on Thursday and
Friday to discuss details of the bailout, including the issue of
collateral for Finland, although the meeting was intended to
iron out technical details rather than to take decisions,
according to two euro zone sources.
Austria's Finance Ministry said its latest comments were in
line with what euro zone leaders agreed in July.
"If there is to be a model for collateral, Austria would
also make a claim," spokesman Harald Waiglein said.
BRUSSELS MUST "CRACK WHIP"
The Netherlands took a similar stance.
"Even if it was not a hard demand from parliament we,
together with some other countries, have always indicated to
Brussels and Finland that if Finland gets collateral our credit
ranking position cannot worsen, and that we ourselves also want
a collateral agreement," a finance ministry spokesman said.
A German official said the Finnish-Greek agreement
"must be explained and discussed in the European sphere".
"There was an explicit carve-out agreed at the July 21
summit. For them to now put their hand up and say we kind of
wanted it (collateral) all along is unbelievable pandering to
their domestic base," said analyst Sassan Ghahramani at SGH
"It must be frustrating, Brussels has to draw the line,
crack the whip."
The July summit, which sought to prevent market instability
spreading through the region, agreed to give Europe's financial
rescue fund new powers to help Greece.
But since then euro zone states have squabbled over measures
to stabilise the region. Bold plans from France and Germany this
week to move toward fiscal union in 2012 got a cool response
from Austria, Finland and Ireland.
And the failure by Nicolas Sarkozy and Angela Merkel to
address burning issues such as common euro zone bond issuance or
beefing up the bloc's rescue fund left investors cold, although
the European Central Bank's reluctant agreement to buy the bonds
of Italy and Spain has tempered the latest market onslaught.
In Ljubljana, the Slovenian finance ministry said it only
aimed to ensure its share of guarantees within the joint euro
zone framework in talks about possible insurance mechanisms
while Slovakia said it had always asked for collateral.
(Additional reporting by George Georgiopoulos and Renee
Maltezou in Athens, Martin Santa in Bratislava and Jussi
Rosendahl in Helsinki; editing by Mike Peacock and Stephen