FRANKFURT (MNI) – There is justification for private sector
involvement in resolving the Greek debt crisis as long it doesn’t result
in a “credit event” or default, European Commission President Jose
Manuel Barroso said in a press conference Tuesday.

He also said that privatization for Greece “is essential, but we
must also have growth from 2013 at the latest.”

He stressed that Greece’s problem was not just “a problem of debt,
it’s a problem of the structural deficit.”

“That is why Greece has to push through reforms and budgetary
consolidation,” Barroso said.

The Commission president said he had “no doubt” of the Greek
government’s determination to push through the necessary structural
reforms. “But there are problems in terms of administrative capacity,”
he said.

He also conceded that it was “very difficult” to continue providing
financial assistance to Greece.

“But…in political terms, what is the alternative?” Barroso
asked. “The alternative would be worse than the current situation. I’m
absolutely convinced of that. A major crisis in Greece would mean a
major crisis in Europe.”

[TOPICS: MT$$$$,M$$CR$,M$X$$$,MGX$$$]