Greece rejects speculation of bail-out

[The Northerner]

Greece rejected speculation on Wednesday that it would need a bail-out to tackle its swollen budget deficit as officials flew in from Brussels to scrutinise the government’s tax and spending plans.

“We don’t expect to be bailed out by anybody, as I think it’s perfectly clear we’re doing what needs to be done to bring the deficit down and control the public debt,” George Papaconstantinou, finance minister, told Bloomberg news agency.

His comments came after Jürgen Stark, a European Central Bank executive board member, said there would be no bail-out for the country by other members of the eurozone. “The markets are deluding themselves when they think at a certain point the other member states will put their hands on their wallets to save Greece,” he told Italy’s Il Sole 24 Ore newspaper.

Mr Stark is one of the eurozone’s most hardline conservative policymakers, and a decision on any rescue package would be taken by politicians rather than the ECB – although the ECB might have a role in advising on the conditions imposed on Athens.

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