Brussels, 10/03/2010 (Agence Europe) - The European Commission is working with the euro area countries to devise a mechanism that Greece could use if necessary, the spokesman for Economic and Financial Affairs Commissioner Olli Rehn said on Wednesday 10 March. There is, then, work being done to resolve the Greek problem and on longer term proposals to enhance the coordination of economic policies within the euro area.
Nothing but the vaguest of information has so far filtered out on the arrangements for a possible mechanism on which Greece could call. There is talk in the press of the purchase of Greek bonds, either directly or through public banks, or providing a guarantee by another government on compulsory issues. The latest statements from a number of European leaders, including German Chancellor Angela Merkel would appear to have cast doubt on their being any EU action on behalf of Greece.
At the informal European Council on 11 February, EU governments promised that, if the need was felt and Greece asked for it, “the EU was ready to take action,” the EU spokesman noted. “At this time, this is not the case. However, we have the means and the instruments to do so if necessary,” he stated. “There have been consultations at a number of levels to prepare for such an eventuality,” he added. “We believe the most important thing has always been and still is to have a solid, credible plan to put Greece's public accounts back in order,” he said. (L.C./transl.rt)