Greek debt restructuring not part of EU strategy
EU economic affairs chief Olli Rehn warned on Monday that debt restructuring for Greece is not part of Europe's strategy and would have "devastating" consequences, one year to the day after a rescue enabled Greece to avoid default.
"Proponents of debt restructuring seem to ignore the potentially devastating consequences for the country itself (Greece) and the euro area as a whole," European Union Economic Affairs Commissioner Rehn said.
"I repeat it is not part of our strategy," he told financial policymakers in Bru-ssels at a conference looking at the European Union response to the finanial crisis of the last 30 months.
On May 2, 2010, European Union leaders agreed a 110-billion-euro joint bailout of the Greek government with the International Monetary Fund.
A week later, they set up a crisis fund worth a trillion dollars all told, which has since been tapped by Ireland -- to the tune of 67.5 billion euros -- and negotiations are currently under way with Portugal over a bailout estimated at some 80 billion.
However, with the recession in Greece meaning its economy has not performed as well as hoped amid huge cuts in public spending, many financial experts are convinced Greece will have to restructure its public debts -- pegged last week by the European Commission at some 330 billion euros.
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