Europe assesses options for new package aid to Greece

Best Growth Stock – The European Union increased their efforts Tuesday by outlining a second rescue for Greece, taking Alternatively the participation of the private sector to help bring the country out of its huge debt burden.

Senior EU officials met Tuesday in Vienna to prepare the ground for negotiations of high-level on Greek debt crisis, and sources indicated that there was a series of measures on the table, including a refinance of debt to the style of the “Vienna initiative” and an extension to the time of the bonds.

Greece faces a gap of more than 60,000 million euros funding by 2012 and 2013. Participation of the private sector in the initiatives could form part of a package of measures to close this gap, including aggressive privatization, new promises of austerity of part of Athens and new funds from the EU and the IMF.

The Agency rating agency Fitch said in a report Tuesday that official creditors of Greece needed to inject up 90,000-100,000 million euros in order that the country has enough time to implement reforms and reduce its debt.

He also said that the ability of Greece to meet its tax promises was “increasingly in doubt”, before the growing opposition of the people and political parties.

With an emphasis on the internal obstacles, the conservative Greek opposition said that the agreement between the Government and the Mission of the European Union inspectors and the International Monetary Fund to reduce the tax value added and thus win their support for the austerity plan “is not enough”.

The Greek opposition had demanded tax cuts to reach a consensus with the Socialist Government over austerity measures, which Brussels said are essential to ensure any extra help.

The euro rose above the US$ 1.44 to touch its highest level in more than two weeks by greater confidence that there will be an agreement to Greece, before falling back slightly after reports that Germany and other countries were still insisting on the participation of the private sector.

In recent weeks, markets have become more and more sceptical about the possibility of economic authorities to resolve the debt problems of Greece, due to the increasing reluctance of countries like Germany, Finland and the Netherlands to deliver more aid.

It joined the new demands of the IMF that Europe providing guarantees of long-term Greece before delivering more funds.

In the last hours of Monday, the President of the euro zone finance ministers, Jean-Claude Juncker, expressed optimism that there will be a new package of financial assistance to Greece.