Home News Ecofin talks about resolving the crisis in Greece

Ecofin talks about resolving the crisis in Greece


2010-03-15_Jean-Claude Juncker_ddp Be) BRUSSELS (Dow Jones) – EU finance ministers (Ecofin discussion, according to the chairman of the Eurogroup, Jean-Claude Juncker, various ways in which Greece can deal with its debt problems. (Photo: ddp)

However, no grant for Greece should be necessary, "said Luxembourg Prime Minister on Monday) when he arrived in Brussels ahead of the meeting of the 16 eurozone finance ministers (the Eurogroup.
"We were commissioned by the European Council to find a viable solution if we have a need," Juncker said, adding: "I do not think that we have a need. The final decision is taken by the European Council." The European Council, Heads of State or Government will meet the 27-member European Union. The next meeting will be held on 25 and 26 March.
Economic and Monetary Affairs Commissioner Olli Rehn announced that was proposed in the European Union, a framework for grants, which would ensure the financial stability in the Union. "The Commission is ready to develop a proposal for a European framework for coordinated assistance," said Rehn.
A rescue package for Greece, there will be, according to the Dutch Finance Minister Jan Kees de Jager is not, "because a bailout is prohibited by the treaty". Greece had to first deal with his problems alone, "said de Jager continues. However, he did not rule out that the country could be helped in other ways. Indicated that there was "different options on the table," including bilateral loans of some EU Member States, "said the Dutchman.
The Spanish Finance Minister Elena Salgado also called a guarantee of the euro area members to the government bonds of Greece as "one of the possibilities." Spain currently has the Presidency.
Mentioned by the ministers of finance options are consistent with media reports from the weekend, which is being prepared for an aid package for Greece in the event that the country can not even refinance. It was reported that aid from 20 billion euros and 25 billion were earmarked to be funded either through bilateral loans or should have the form of a guarantee.
With a quick solution is not however expected to be. According to the Austrian Finance Minister Josef Pröll, there is no reason to expect a speedy decision. "It is totally unclear whether we are going to make decisions," he said. The finance ministers of the eurozone countries discussed in this Monday, in Brussels again on the Greek debt crisis, then on Tuesday, EU finance ministers initiated by Greece fiscal consolidation measures assess.
Greece will be able to reduce according to estimates by EU Commissioner Rehn using the cost-cutting measures announced in 2010 its budget deficit to 8.7% of gross domestic product (GDP). "Greece is on track to achieve the goal of reducing the budget deficit by 4 percentage points this year," said Rehn continued. This perception might join the euro group at their meeting this Monday.
Greece is under great pressure from the EU and the financial markets to bring its public finances in order. In recent years the country has accumulated large debts, which Neuverschuldungsrate was 2009 at 12.7% of GDP. In the euro zone are allowed a maximum of 3%. For this year, Greece, the EU pledged to reduce the budget deficit by four percentage points to 8.7% respectively.
The Greek government decided in early March extensive cost-cutting measures that include cuts in earnings in the public sector and a rise in VAT. This additional austerity package is expected to save a total of EUR 4.8 billion have resulted. It is the second austerity package the Greek government.

-By Adam Cohen, Andrea Thomas and Nicholas Winning, Dow Jones Newswires;
+49 (0) 69 297 25 300, konjunktur.de @ dowjones.com
DJG / DJN / kth / hab / sh