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24 March 2010

Eurogroup President: IMF could help Greece.


Speaking at the ECON Committee, Jean-Claude Juncker said a number of member states increasingly favoured this idea. Excluding a member state from the Eurozone, he added, should not be considered a possibility.

"My personal view is that it's better to have a solution that does not have an IMF component because the euro area needs to be able to solve its own problems. But I think mixing the two instruments would not be a major scandal," said Mr Juncker, provided euro area governments provided "the lion's share" of any financial aid.
Any twin-track approach "must respect eurozone rules," he added.
Initially opposed to any IMF financing for debt-ridden Greece should it struggle to meet refinancing demands in the coming weeks, a number of key national capitals have recently warmed to the idea.
"In the case of such an emergency arising...the financial assistance of the IMF is, for the chancellor and the government, definitely a point for discussion," German government spokesman Ulrich Wilhelm told a government news conference in Berlin on Monday.

Spain
and others
As economists and politicians increasingly seek to explain the underlying causes of Greece's current difficulties, eurozone imbalances are coming in for increased scrutiny.
Mr Juncker told MEPs the issue of such disparities within the eurozone was not the main issue at the moment, but would have to be tackled at some point.




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