BEIJING (MNI) – The President of the European Commission on Friday
ruled out a debt restructuring as a solution to Greece’s current fiscal
problems, noting that a bailout package will be ready in days and that
contagion will be prevented from spreading further across the euro zone.
Jose Manuel Barroso told reporters here that a multi-billion euro
bailout for the troubled southern European nation should be completed
“within days.”
“Debt restructuring in the euro area… is not an option,” he said
at a briefing.
He told reporters that he has “no doubt” that Greece’s needs will
be met and that the actions will “prevent the further effects of
contagion.”
He was speaking following reports that the Greek government has
agreed to the outline of a E24 billion budget consolidation package,
which would include cuts in civil service pay and benefits as well as a
value-added tax increase to reduce its burgeoning budget deficit.
The spread between Greek two-year bonds and their German equivalent
narrowed by around 300 basis points on Thursday amid renewed optimism
that Europe’s leaders are nearing a workable solution to the fiscal
crisis.
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