EU Ministers Tell Greece More Action Needed
The euro has been pressured by Greece’s fiscal woes for the since late last year and other EU nations are not pleased. A poll taken by a German newspaper showed that a majority of Germans oppose aid to Greece and are in favor of removing Greece from the European Union if necessary. On Tuesday EU ministers told Greece that its will have to take additional measures to address the nation’s debt problems and calm ‘irrational’ financial markets. At the EU meeting ministers from Germany, Austria and Sweden stated that Greece should follow the lead of Ireland and Latvia who are cutting spending and wages aggressively. At the meeting Joerg Asmussen stated, “We made it clear the ball is in Greece’s court. Additional measures by Greece are needed.” After the meeting the ministers said that the 30 days they have given Greece to implement measures before reporting back to the group will only end with more demands for tax hikes, budget cuts or both.
No Specifics About Support For Greece at EU Ministers Meeting
Greece is the first EU country in eleven years to require a political pledge of support after Greek debt concerns prompted an attack by financial markets which has pressured the multi nation currency, lifted bond yields making debt servicing much more difficult. The ministers did not say anything specific about aid or support for Greece and put pressure on Greece to implement severe measures in exchange for a promise of support if things get out of hand. Austrian Finance Minister Josef Proell stated, “The pressure on Greece to consider further measures by March 16 has clearly increased. Germany, France and others — there (would) be a group of countries who can give this money to Greece to stabilize the country and also the euro zone. But this debate is not yet on.”
US Confident EU Can Handle Greek Situation says White House Spokesman
European Monetary Affairs Commissioner Olli Rehn said that economic experts from the IMF, the European Commission, and the ECB “will be on the ground in Athens in the coming days” to make sure steps to address the fiscal crisis are being implemented. In the US White House spokesman Robert Gibbs said that the United States is confident the European Union is capable of resolving the Greek situation but dodges a question about whether US president Obama was happy with the steps taken by the EU so far. Gibbs told reporters, “We have confidence, as they told the president, that the EU is capable of dealing with the situation.”
