The EU finance ministers continue their negotiations on the needed measures to insure the fiscal stability of the euro area and the monetary union after concluding the first day of meetings on Monday. The new developments included the tabled possibility of Greek debt re-profiling as the EU-IMF bailout given for the nation last year so far failed to sustain the crisis and support the journey into healthy financial conditions.
According to comments from Luxembourg Prime Minister Jean-Claude Juncker, they might discuss the possibility of re-profiling Greek bond maturities as part of a package to support the nation including more sales of state assets and more austerity measures to deepen spending cuts.
Greece attempted to shun the possibility of debt restructuring to ease market strain and help regain market confidence as borrowing costs surged to records. Juncker tried to calm nervous markets by assuring that restructuring is not the first option saying it's not re-profiling or nothing. It's measures, measures and measures, and then maybe re-profiling.
Merkel already stated her opposition to the idea of debt restructuring, as she told reports yesterday despite the speculations that Germany is leading the efforts to end the crisis. Merkel sees that debt restructuring before 2013 when the permanent bailout mechanism is in place would be incredibly damaging to the euro area.
The finance ministers continue today on Tuesday their second day of meetings as the Ecofin gathers the EU-27 finance ministers and hopes are for a more suitable solution for the Greek crisis before resorting to restructuring.