June 19, 2011
Europe's single currency governments are expected to throw Greece a summer lifeline, agreeing to disburse €12bn by next month to keep the debt-stricken country from going broke and triggering an international crisis.
But the meeting in Luxembourg of finance ministers from the 17 eurozone countries also faced the much bigger challenge of trying to structure a new three-year bailout for Greece in a way that would persuade European banks, pension funds and other private creditors to roll over the country's ballooning debt.
The Eurogroup meeting took place amid a mood of growing futility over Greece and pessimism over the fate of the euro.
"We wouldn't be able to control an insolvency," warned the German chancellor, Angela Merkel. "We all lived through Lehman Brothers. I don't want another such threat to emanate from Europe."
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