Bailout Talks

EU Commissioner Calls on Euro Zone to Cut Greek Debt

  • Why it matters

    Why it matters

    If euro-zone ministers fail to agree on another ESM loan to Greece next Thursday, Athens will default on an $8-billion repayment early July – and send the euro zone into renewed turmoil.

  • Facts


    • Ministers of the 19-nation euro zone will meet next Thursday in Luxemburg with the intention of paying out another chunk of loans to Greece.
    • IMF head Christine Lagarde is willing to continue lending to Greece to give European creditors more time to settle an ongoing dispute over debt relief.
    • German Finance Minister Wolfgang Schäuble has insisted on IMF participation in any new assistance plan, but the IMF first wants some Greek debt to be forgiven.
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Greek PM Tsipras meets with European Economic and Financial Affairs Commissioner Moscovici at the Maximos Mansion in Athens
Mr. Moscovici’s comments are probably music to the ears of Greek PM Alexis Tsipras (left). Source: Reuters.

With a Greek sovereign default looming early July, when Athens has to repay some €7.3 billion, or $8.2 billion, in maturing loans, the European Union’s powerful commissioner for economic and financial affairs has called on the euro zone finally to agree a way to reduce Greece’s debt burden when finance ministers meet on June 15.

“We must find a solution at the next meeting,” Pierre Moscovici told Handelsblatt’s sister publication WirtschaftsWoche in an interview published on Friday. “No one would understand if we were to create a new crisis out of nowhere,” he said, adding the finance ministers from the 19 euro-zone countries had “a duty to find a compromise.”

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