A leading figure in the European Central Bank has suggested euro zone countries should agree funding for Greece over the next two years. That would put off a permanent solution until after elections in Germany.
Joerg Asmussen was speaking as euro zone finance ministers prepared for yet another meeting with the International Monetary Fund, an organisation unlikely to welcome any further delay.
The IMF’s Christine Lagarde wants a permanent agreement on Greek debt sooner rather than later to protect the country’s economy from continued damage.
The Greek debt mountain is enormous and growing according to the government — it is more than 175% of the total amount the country produces — and the IMF want it down to 120% by 2020.
The Greek government has issued two new laws to make sure budgets are met, and that the proceeds from the sale of public assets are used to pay off debt.
Along with an austerity package earlier in the month, a government spokesman said that should be enough for the Eurogroup ministers to release another 30-billion euros in emergency aid.
The IMF has warned euro zone countries that they will inevitably have to kiss goodbye to some of the funds they have lent to Greece – something Germany has said is unacceptable and illegal.
Greece is heading for its sixth year of recession – and the pain felt in Greek households has made street protests commonplace.
Copyright © 2014 euronewsMore about:
- 1Hungary gets a bitcoin cash machine as the virtual currency craze reaches Budapest
- 2Ukraine related sanctions affect farmers, shoppers, tourists and burger eaters
- 3European farmers protest over lost revenue from Russia sanctions retaliation
- 4Scottish independence vote raises questions for whisky producers
- 5Swiss put the block on Russian sanction-busting
- 1#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians | euronews, world news
- 2Ellen MacArthur: making waves on a journey to a circular economy | euronews, the global conversation
- 3China executes eight Muslims convicted of terrorism | euronews, world news
- 4Hoverbike on the horizon | euronews, hi-tech
- 5Putin T-Shirts flying off the shelves at Moscow megastore | euronews, world news
- 6Everything you need to know about the Ebola virus | euronews, world news
- 7Ukraine accuses Russian aid convoy of stealing factory equipment | euronews, world news
- 8Massive Swedish forest fire is declared a national emergency | euronews, world news
- 9Man, 27, fails in suicide bid after tigers reject chance to eat him | euronews, world news
- 10Risk of fresh ash cloud threatens European air travel | euronews, world news
- 11Iceland warns Europe’s airlines of possible volcanic eruption | euronews, world news
- 12Beyond the subconscious | euronews, futuris
- 13Canada sends hilarious barb to Russia over Ukraine ‘incursions’ | euronews, world news
- 14Bardarbunga volcano in Iceland continues to rumble | euronews, world news
- 15Poland wants compensation from the EU for Russian import ban | euronews, world news
- 16EU’s Russia sanctions doing more harm than good says Hungary’s PM Orban | euronews, world news
- 17Greek farmers suffer in economic war between Russia and EU | euronews, economy
- 18Turkey’s women have the last laugh | euronews, world news
- 19Hamas executes 18 suspected collaborators | euronews, world news
- 20Turkish ferry makes high-speed final landing | euronews, no comment
Wires > Business
- 00:09 CET Former FT CEO to become next BBC Trust chairman
- 15:55 CET Alibaba aims to launch share sale in early September – source
- 15:10 CET Britain’s Co-op backs radical reform plans
- 14:35 CET Britain’s Co-op backs radical reform plans
- 13:58 CET Polls show wide support in France for changes in 35-hour week
- 13:31 CET Left-leaning EU leaders agree no change to budget pact – Gabriel
- 10:00 CET China graft watchdog probes another executive at Chinese car maker
- 08:46 CET Alibaba set to launch IPO roadshow week of September 8 – New York…