Euro Crisis - Next Step

Greek Prime Minister George Papandreou on Saturday denied there was even unofficial dialogue over Greece quitting the euro zone and requested that his troubled nation be "left alone to finish its job".
Ministers from the euro zone's greatest economies met in Luxembourg to debate Greece's debt disaster on Friday but Athens and senior EU officers denied a report by Germany's Spiegel Online that the Greek authorities had raised the prospect of leaving the 17-member euro zone.

"These situations are borderline felony," Papandreou instructed a convention on the Ionian island of Meganisi. "No such situation has been mentioned even in our unofficial contacts...I call upon everyone in Greece and abroad, and especially in the EU, to leave Greece alone to do its job in peace."
European Central financial institution Governing Council member Erkki Liikanen on Saturday shot down experiences of Greece exiting the euro and stated restructuring its 327 billion euro ($470 billion) debt would offer no everlasting solution to its problems.

"No euro zone country desires to leave the euro," Liikanen, who additionally heads the Financial institution of Finland, mentioned in an interview at Finnish national broadcaster
Jean-Claude Juncker, head of the group of euro zone finance ministers who known as the late Friday assembly, stated there was a broad dialogue of Greece and other worldwide financial issues but stated the idea of exiting the euro was stupid.

"We have not been discussing the exit of Greece from the euro area. This is a silly idea. It is under no circumstances -- it's an avenue we would by no means take," he told reporters after the assembly attended by ministers from Germany, France, Italy and Spain.
"We don't wish to have the euro area exploding with out reason. We had been excluding the restructuring option, which is mentioned heavily in certain quarters of the monetary markets," he added.
However he said a meeting of all euro zone finance ministers on May sixteen would focus on whether Greece wanted an extra financial plan. The EU is at present negotiating a bailout with Portugal, the third state it's rescuing after Greece and Ireland.

Despite a 110 billion euro international bailout, Greece, a euro zone member since 2001, has not minimize its price range deficit as quick as it promised its lenders amid a deep recession. Good points from spending cuts and tax hikes have been partly erased by low revenues attributable to tax evasion and a deep recession.
Monetary markets have been sceptical for months that Athens may manage its large debt with out eventually restructuring. As austerity bites, even some ruling socialist occasion politicians have been suggesting a "tender" restructuring which might contain lengthening maturities on the country's bonds.

On Friday, the euro fell practically 1 p.c towards the dollar and the price of insuring Greek debt against default was quoted at a file high in response to the Spiegel report.
Greek Finance Minister George Papaconstantinou attended the Luxembourg talks, his finance ministry said. It added that Greece remained committed to repairing its funds and returning to economic growth.

The Luxembourg talks were additionally attended by European Central Financial institution President Jean-Claude Trichet and Olli Rehn, the European commissioner for economic and monetary affairs.
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