German Finance Minister Says EU To Offer Help to Members Only in Extreme Cases
German Finance Minister Wolfgang Schaeuble has reportedly said that a European Union state can seek bailout from the group only in case of a severe crisis and that any such aid would have to be delivered bilaterally.
Talking to Bild am Sonntag newspaper about the statement of European Commission President Jose Manuel Barroso that coordinated help should be provided for Greece, Schaeuble said that the EU had no provision for such a joint mechanism to assist any of its member state.
Schaeuble said: "There is no joint instrument for EU help. So only in the most extreme case could bilaterally coordinated, voluntary help come into question. But Greece has said itself it does not need this."
Greece had earlier hinted at seeking IMF help in case the borrowing costs remain high and it fails to deliver the promised deficit cuts. However, Greek Prime Minister George Papandreou said on Saturday that his country had initiated the necessary steps to ward off its fiscal crisis and that the country would not default on its debt commitments.
The EU members will meet in Brussels next week to discuss this issue threadbare.
Barroso had earlier called for a standby aid package for Greece and suggested that the 16 countries sharing the euro currency should be ready to lend to Greece.
Schaeuble has also said: "Greece, as a member of the IMF, has access to help from the IMF."
