EU Busy On a Contingency Plan for Greece
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A day after the government in Greece issued bonds to help pay its massive national debt, the European Union is said to be working on a contingency plan to rescue the nation if the country begins to crumble under the weight of its own financial system, according to a report from Bloomberg on Thursday.
Greece sold 5 billion euro ($6.8 billion) of bonds on Thursday, but European officials are readying plans to bailout Greece in the case that the country cannot cut the EU's biggest budget deficit without outside funding.
"We're telling financial markets: Look out, we're not abandoning Greece," said Jean-Claude Juncker of Luxemburg, the head of the euro-area finance ministers. He did add that, "I don't assume outside financial help will become necessary."
The officials for the EU have stated that if Greece were to require financial assistance, then stringent conditions would be tied to any deal.
Juergen Kroeger, head of the department that oversees national economies for the European Commission talked of the compliance that Greece would have to make in the wake of a bailout from the EU, but said that there are no immediate signs that the country will require assistance.
The briefing among the EU on Thursday backs up German lawmaker comments last week that eluded to a pool of 25 billion euro that would be held in reserve to bailout Greece in the case emergency aid is needed.
German Chancellor Angela Merkel and other lawmakers have said however that Greece has now made the proper moves to reassure the financial markets and bring down the nation’s deficit. She added that the bond issue on Thursday gave the EU a sense of optimism about the country’s financial future.
The government in Greece has made plans to reduce the deficit by 4 percentage points from 12.7 percent of the nation’s gross domestic product.
Greece sold 5 billion euro ($6.8 billion) of bonds on Thursday, but European officials are readying plans to bailout Greece in the case that the country cannot cut the EU's biggest budget deficit without outside funding.
"We're telling financial markets: Look out, we're not abandoning Greece," said Jean-Claude Juncker of Luxemburg, the head of the euro-area finance ministers. He did add that, "I don't assume outside financial help will become necessary."
The officials for the EU have stated that if Greece were to require financial assistance, then stringent conditions would be tied to any deal.
Juergen Kroeger, head of the department that oversees national economies for the European Commission talked of the compliance that Greece would have to make in the wake of a bailout from the EU, but said that there are no immediate signs that the country will require assistance.
The briefing among the EU on Thursday backs up German lawmaker comments last week that eluded to a pool of 25 billion euro that would be held in reserve to bailout Greece in the case emergency aid is needed.
German Chancellor Angela Merkel and other lawmakers have said however that Greece has now made the proper moves to reassure the financial markets and bring down the nation’s deficit. She added that the bond issue on Thursday gave the EU a sense of optimism about the country’s financial future.
The government in Greece has made plans to reduce the deficit by 4 percentage points from 12.7 percent of the nation’s gross domestic product.
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