EU Has No Greek ‘Plan B;’ Finance Chief Pledges Cuts

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By Francine Lacqua and John Fraher

European Union policy makers have no “plan B” to help Greece, the bloc’s top economic official said, and Greek Finance Minister George Papaconstantinou said he’s not aware of talks of a possible rescue.

“There is no bailout problem,” Monetary Affairs Commissioner Joaquin Almuniasaid today in an interview with Bloomberg Television at the World Economic Forum’s annual meeting in Davos, Switzerland. “Greece will not default. In the euro area, default does not exist.”

Greek bonds have slumped on speculation the country will need help from the EU to cut the region’s highest budget deficit and tame its rising debt. Prime Minister George Papandreou yesterday said Greece is being victimized by rumors in financial markets and he denied seeking to borrow from European partners.

EU Has No Greek ‘Plan B;’ Finance Chief Pledges Cuts

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