European officials to revamp Greek aid

Financial Times
May 8, 2011

European officials are preparing to revamp Greece’s bail-out package after concluding that Athens would be unable to raise money in the markets early next year, as envisaged under a €110bn ($158bn) rescue plan.

Eurozone ministers this weekend publicly acknowledged that Greece would probably need additional cash from the European Union or other international institutions.

“We think that Greece does need a further adjustment programme,” said Jean-Claude Juncker, Luxembourg’s prime minister and chairman of the eurogroup of finance ministers.

George Osborne, UK chancellor of the exchequer, said changes to the Greek bail-out programme were “inevitable”.

Although such a conclusion had been widely accepted by analysts and officials working on the issue, the public recognition marks a turning point in the debate over Greece’s future.

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