A world in economic crisis

Can the Eurozone ministers stem the debt crisis?

Posted in Greece, unemployment, welfare state by Aussie on April 16, 2010

Eurozone ministers seek ways to stem debt crisis | The Daily Caller – Breaking News, Opinion, Research, and Entertainment

The current debt crisis in Europe continues to be a problem. The real problem in the crisis is Greece. They are now waiting for a billion dollar bailout from the IMF and the European zone. Wow!!

The Greek government said Thursday it would hold “systematic negotiations” on the standby loan package with other members of Europe’s currency union at the two-day meeting in Madrid.

But arriving at the Madrid conference center Friday, Jean-Claude Juncker, head of the eurozone finance ministers, said, “There are no indications that Greece will ask for help today.”

The Greek government said its request for more details on bailout loans was not a signal that the country would seek aid. Officials from the European Commission, the European Central Bank and the IMF will visit Athens on Monday to fix details of a standby loan offer that aims to reassure markets that Greece won’t default on its mounting debt.

“Today is not the day for a decision on Greece,” Spanish Economy Minister Elena Salgado told reporters before going into the meeting. “A decision on Greece was taken some days ago.”

Investors are demanding high interest rates for Greek bonds because they believe Greece could be unable to repay debt despite recent efforts to cut a massive budget gap.

Finance ministers from the 16 nations that use the euro agreed Sunday to give Greece some €30 billion in individual loans if the country can no longer borrow on the market.

The announcement initially calmed markets — and saw the interest rate gap, or spread, between Greek 10-year government bonds and their benchmark German equivalent fall.

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