UPDATE 1-Eurogroup’s Juncker does not expect Greece bailout

* Euro zone ready to guarantee Greece’s stability if needed

* Can’t rule out aid but does not expect bailout

* Greece must get out of debt itself, will not be left alone

(Adds more quotes, background)

BERLIN, March 5 (BestGrowthStock) – Euro area states will guarantee
the currency zone’s stability if need be but are unlikely to
need to given Greece’s own efforts at reform, Eurogroup Chairman
Jean-Claude Juncker said on Friday.

Juncker, who chairs meetings of euro zone finance ministers,
said there is no reason to expect German taxpayers’ money would
be needed to rescue debt-stricken Greece, though aid for Athens
cannot be ruled out.

“It remains the case that Greece must get itself out of this
self-indebted situation. Greece really has to do something.
Greece is doing that now,” he told Deutschlandfunk radio.

“If all this were not to suffice, the euro zone would be
ready to guarantee the financial stability of the euro area but
I do not expect that to be necessary because I want to expect
the financial markets to register that the Greek government is
goal-orientated and acting appropriately,” he said.

Juncker did not expect Greece to need foreign financial aid,
but he added: “That can’t be ruled out.”

Greece drew strong demand for a crucial bond issue on
Thursday but paid a steep risk premium that underscored its plea
to Germany and other European Union partners for support to help
lower its borrowing costs. [ID:nLDE6230PC]

Juncker’s comments were in line with the carrot and stick
approach taken by European policymakers in recent weeks, saying
Greece must do more to solve its own problems but would not be
abandoned, while stopping short of promising concrete aid.

“Greece will have to borrow and refinance with higher rates
for a longer period of time,” Juncker said.

“…there is a European solidarity with Greece — at least
in the euro zone — a solidarity that can be activated if the
financial markets were not to acknowledge that the Greek
government is acting systematically,” he added.

“The Greeks won’t be left alone.”

Asked if solidarity meant financial aid, Juncker replied:

“No, we’re not doing that. We are just saying to the
financial markets: ‘pay attention, we’re not leaving the Greeks
alone and we’re not giving the Greeks the impression that we
will simply pass money across the table.”

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UPDATE 1-Eurogroup’s Juncker does not expect Greece bailout