EU finance chiefs say they have drawn up safeguards to help Greece should it default on its massive debt. Meeting in Brussels the 16 eurogroup member countries said the measures would protect the euro.
But details, in particular where any emergency bailout would come from, were sparse. They did ,however, rule out granting loan guarantees to the debt stricken nation.
Luxembourg’s Prime Minister and Chairman of the eurogroup Jean-Claude Juncker said: ‘‘We have clarified the technical arrangements which will enable us to take a decision on coordinated action. Coordinated action to be activated swiftly, in case of need.’‘
World financial markets have been jittery for weeks as the EU mulls over what to do. However, a final decision isn’t expected until the end of the month.
The bloc has ordered Athens to bring in stringent austerity measures to deal with its huge deficit, including a large deeply unpopular VAT hike.