ECB says Greece to stay in eurozone
(18 January 2010 – Europe) Rumours circulating that the debt laden nation of Greece may have to disconnect from the 16 nation eurozone have been dismissed by the European Central Bank head Jean-Claude Trichet, who has taken a tough line refusing help saying ‘the problem is not to get help, the problem is to help oneself’.
Greece has been at the top of the central bank’s problem list and despite observers expecting the EU to step up to help the nations ailing deficit, Mr Trichet has said that no government or state can expect any help from the European Central Bank.
The central bank, which will be keeping its key interest rates at the record low of 1.0 percent, said that there would be no exception for Greek bonds within the bank’s collateral requirements; the requirements are to revert to pre-crisis criteria at the end of 2010.
Greek finance minister, George Papaconstantinou, has said that a plan to be delivered is a ‘road map’ to reverse the ‘huge credibility gap’.
The ECB chief added that all nations have to address their individual situations taking the appropriate, bold and courageous measures to get public finances in order.
Analysts have said that a combination of Greece’s national finance issues, as well as similar budget deficits in Ireland, Portugal and Spain, could fuel as future crisis if officials do not step in.
The central bank, which will be keeping its key interest rates at the record low of 1.0 percent, said that there would be no exception for Greek bonds within the bank’s collateral requirements; the requirements are to revert to pre-crisis criteria at the end of 2010.
Greek finance minister, George Papaconstantinou, has said that a plan to be delivered is a ‘road map’ to reverse the ‘huge credibility gap’.
The ECB chief added that all nations have to address their individual situations taking the appropriate, bold and courageous measures to get public finances in order.
Analysts have said that a combination of Greece’s national finance issues, as well as similar budget deficits in Ireland, Portugal and Spain, could fuel as future crisis if officials do not step in.
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