EU looking at Greece solution

After growing speculation in markets over whether Greece will receive any assistance to meet its fiscal problems, a top official in Brussels acknowledged yesterday that a rescue package is being discussed. Luxembourg’s Prime Minister Jean-Claude Juncker, who leads the group of eurozone finance ministers, said officials are seeking a solution to Greece’s fiscal crisis that will satisfy financial markets, Luxemburger Wort reported, citing an interview. «Greece will be one of the topics at the meeting» of European leaders in Brussels today, Juncker told the newspaper. «I am having several discussions at the moment so that we can come up with an answer that will satisfy the markets,» the newspaper quoted Juncker as saying. Juncker also said that «stimulus measures have to be carefully removed from the economy, not in an abrupt manner.» «The goal is not to accumulate any further debt. That counts for every country in the eurozone, including Luxembourg.» With investors largely discounting a financial rescue package being offered to Greece, the Athens bourse added 2.37 percent yesterday after Tuesday’s advance of nearly 5 percent. The spread of Greek bonds over benchmark German Bunds tightened yesterday to its narrowest in recent weeks. Meanwhile, the European Central Bank’s Governing Council was expected to meet via teleconference late yesterday to discuss Greece’s fiscal crisis and its implications for the euro region, three people familiar with the matter said, Bloomberg reported. Officials have been asked to prepare dossiers on Greece, Spain and Portugal for the meeting of the 22-member council. Options for extending financial aid to Greece include bilateral help from individual countries, assistance from the International Monetary Fund and aid from the EU. An EU official told reporters yesterday that leaders are considering all options, including a standing facility to provide credit guarantees.

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