Euro Zone May Be Looking to Delay or Split Greece's Second Bailout
Reports Wednesday indicate euro zone officials may be considering the delay or breakup of the second bailout program for Greece.
Euro zone officials may look to postpone the bailout program until after Greek elections are held in April, Reuters said this morning. Sources close to the matter suggested finance ministers are not confident Greece’s political leaders are committed in following through with some of the budget cuts. Germany, Finland and the Netherlands are noted as the countries which believe a further delay is needed.
It’s becoming more difficult to deal with Greece as the economy continues to worsen. Recent data showed the country’s economy contracted 7 percent over the fourth quarter of 2011, versus the euro zone which saw GDP shrink by just 0.3 percent.
Calls for a splitting of the bailout package into several parts have also been heard.
“For now, the central aim of euro zone finance ministers remains to push ahead with the second package as agreed last October - which would mean signing off on PSI in the coming week, possibly at a Eurogroup meeting set for Monday,” Luke Baker and Jan Strupczewski from Reuters said.
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Euro zone officials may look to postpone the bailout program until after Greek elections are held in April, Reuters said this morning. Sources close to the matter suggested finance ministers are not confident Greece’s political leaders are committed in following through with some of the budget cuts. Germany, Finland and the Netherlands are noted as the countries which believe a further delay is needed.
It’s becoming more difficult to deal with Greece as the economy continues to worsen. Recent data showed the country’s economy contracted 7 percent over the fourth quarter of 2011, versus the euro zone which saw GDP shrink by just 0.3 percent.
Calls for a splitting of the bailout package into several parts have also been heard.
“For now, the central aim of euro zone finance ministers remains to push ahead with the second package as agreed last October - which would mean signing off on PSI in the coming week, possibly at a Eurogroup meeting set for Monday,” Luke Baker and Jan Strupczewski from Reuters said.
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