Eurogroup Head Juncker Says Angela Merkel Is ?Playing With Fire? With Extreme Consequences??Belgium and Italy could be forced to seek a bailout even sooner than Spain If Greece default on it?s debt

June 18th, 2011

Image: Wikimedia Commons

A plan to involve private creditors in a Greek restructuring is ?playing with fire,? Eurogroup leader Jean-Claude Juncker told Germany?s Sueddeutsche Zeitung.

The hard restructuring favored by Angela Merkel would be seen as a default by ratings agency, leading to ?extreme consequences? for the eurozone. He warned that Belgium and Italy could be forced to seek a bailout even sooner than Spain.

Although Germany seems to have agreed to a soft restructuring, nothing is settled yet.

Asked whether Greece could quit the eurozone, Juncker said it was an ?absurd? idea with ?unimaginable? consequences. ?There would be a contagion not only across the eurozone but also in Romania, Bulgaria, Macedonia. It would cause widespread fire. Even the most outlandish don?t raise this hypothesis,? he said.

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