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Sunday, 5 February 2012

Eurogroup’s Juncker Says Greece Default A Possibility

BERLIN (MNI) – Eurogroup chairman Jean-Claude Juncker in a newspaper interview published over the weekend warned that there will be no second fiscal aid program for Greece if it doesn’t comply with the consolidation and reform program set by the EU and the IMF.

“If we were to determine that everything has gone wrong with Greece, then there would be no new program, then this would mean that in March they would have to declare bankruptcy,” Juncker, who is Prime Minister of Luxembourg, told German weekly Der Spiegel. This possibility of a bankruptcy should help Greece to find new strength “where there are symptoms of paralysis” to implement the necessary reforms, the Eurogroup chairman argued. Regarding the negotiations about a haircut on Greek debt, Juncker stressed that this remains a special case. “There was a certain involvement of private creditors necessary, for other countries this is definitely ruled out,” he said.

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