EU changes stance on Greece default
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Eurozone finance ministers are prepared to accept for the first time that Greece should default on some of its bonds under a new rescue plan designed to make the country’s debt levels more manageable.
According to the Financial Times, a new bail-out strategy will be discussed at a meeting in Brussels today, which may include new concessions to reduce Athens’ debt by lowering the interest rates on bail-out loans, as well as a bond buy-back programme.
European leaders have previously been reluctant to back a rescue plan categorised as a default due to fears that investors will shy away from bonds issued by peripheral eurozone countries.
The FT says the new strategy may see the French-backed plan for banks to roll over their Greek debt abandoned.
The BBC says senior EU officials are also meeting in Brussels today amid fears that Italy could be drawn into the debt crisis. It says a spokesman for European Council president Herman Van Rompuy, who called the meeting, denied it is a crisis meeting.
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