Greek Aid Call Would Send ‘Worst’ Signal, Finance Minister Says
February 08, 2010, 8:14 PM ESTBy Svenja O’Donnell and David Tweed
Feb. 8 (Bloomberg) -- Greek Finance Minister George Papaconstantinou said an appeal for outside help to solve the nation’s budget squeeze would send out “the worst possible signal” to investors.
“We are trying to implement a very difficult stability and growth program to which we are fully committed,” Papaconstantinou said in an interview with Bloomberg Television today. “The worst possible signal which we could be sending out is one calling for outside help.”
Greece is struggling to convince investors that its budget shortfall, which at 12.7 percent of gross domestic product is the largest in the European Union, can be brought down to the bloc’s 3 percent limit. Moody’s Investors Service, Standard & Poor’s and Fitch Ratings cut the nation’s credit grade in December, and concerns it may need a bailout helped spark a rout in global stocks last week.
“We will tackle the deficit,” Papaconstantinou said. “We have the measures that are described in the program.”
Greek Prime Minister George Papandreou has already pledged to step up budget cuts if needed. EU Monetary Affairs Commissioner Joaquin Almunia said last month that leaders have no “plan B” to help Greece.
Papaconstantinou predicted that Greece’s budget plan will get the approval of European finance ministers.
“The program will be getting the final green light from Ecofin after having gotten the green light from the European Commission,” he said. “This is where we are.”
Tax revenues for January were better than expected by “some percentage points,” Papaconstantinou said. The data have yet to be published.
--Editors: Craig Stirling, Reed Landberg
To contact the reporters on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net; David Tweed in Athens on jtweed@bloomberg.net.
To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net
