Reuters: Juncker - Greece becoming more competitive, must stay in euro

18 September 2012

Greece's competitiveness has greatly improved, its wage costs have fallen significantly and the eurozone must strive to keep the country as a member, the chairman of the Eurogroup of finance ministers said.

"It is not the case that the programmes for Greece have been ineffective", Jean-Claude Juncker said. "A Greek exit from the euro would be disastrous for the Greeks. Europe as a whole would be weakened too."

Some politicians in Germany and elsewhere have publicly suggested that Greece, with a heavy debt load and now in its fifth year of recession, might fare better outside the eurozone. Juncker also said the eurozone would make "really tough" demands of Spain on structural reforms and budget savings. Madrid is coming under growing market pressure to request aid from the eurozone's bailout fund to help finance its debts.

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