This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ECB's Asmussen Says Greece To Need Aid Beyond 2014

The IMF and many economists, however, fret that an extension and fresh loans alone still won't be enough and that Greece's eurozone creditors might have to forgive some of their debt.

"We cannot help the country with loans alone," Asmussen insisted. "That closes the financing gap but at the same time increases the country's debt."

Germany's influential central bank chief Jens Weidmann, who also sits on the ECB's governing council, said Friday that Greece will need another debt write-off, a so-called haircut, at the end of a long reform path to make its debt sustainable again.

Earlier this year, Greece reached a deal with private creditors to wipe some ⿬100 billion off the national debt.

But forgiving some of its public debt is an option that is unpalatable to many political leaders across Europe because they oppose the idea of telling voters that billions in taxpayers' money will be lost.

"That is impossible," insisted German Finance Minister Wolfgang Schaeuble in an interview with German broadcaster ARD.

Instead, he again urged Greece to do its homework and push through the budget cuts and structural reforms, saying it has "decided but not yet implemented them."

Schaeuble added that telling Greece now that its creditors will eventually foot the bill would reduce the country's incentive to reform and could therefore be self-defeating because the crisis' underlying causes wouldn't be addressed.

"Greece cannot be spared the path of regaining competitiveness through structural reforms," he added.

When pressed to say how much rescuing Greece will eventually cost German taxpayers, Schaeuble said: "Nobody knows that exactly."

___

Juergen Baetz can be reached on Twitter at http://www.twitter.com/jbaetz

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs