BRUSSELS (MNI) – The European Commission is not working on a ‘plan
B’ scenario that includes a default by Greece on its sovereign debt,
officials said Monday.
“No, we are not working on such a hypothesis,” said a spokesperson
for EU Economic and Monetary Affairs Commisioner Olli Rehn.
The outright denial came in response to a question related to news
reports that Germany was preparing measures to support its financial
institutions should there be a Greek default.
In order to receive continuing financial assistance pledged by the
EU and the International Monetary Fund, Greece must hit certain fiscal
targets, show progress on structural reform measures and privatisation.
A worse-than-expected economic slowdown and the abrupt departure
earlier this month of officials reviewing Athen’s progress towards its
targets, has raised speculation that the next tranche of financial aid
could be withheld.
Commissioner Rehn on Sunday welcomed new measures announced by
Greek authorities over the weekend and said that Commission officials
would soon be headed to Athens to provide technical assistance prior to
a return to the country by the inspectors, who are expected to conclude
their work by the end of the month.
–Brussels newsroom +32495228374 pkoh@marketnews.com
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