Eurozone Finance Ministers Push Greek Aid Decision to November

Posted October 4th, 2011 at 12:45 am (UTC-5)
Leave a comment

Finance ministers from the 17 member eurozone have delayed a decision on giving Greece another installment of bailout cash.

But chief eurozone negotiator Jean-Claude Juncker is strongly denying allegations that some in the EU want Greece to default on its debt and be tossed out of the eurozone.

Juncker said Monday the eurozone finance ministers will do everything to avoid a Greek default. He said a final decision on whether Greece will get an $11 billion installment from the 2010 bailout could be made as soon as mid-October. An EU, European Central Bank and International Monetary Fund assessment of Greek economic reforms will not be ready before October 13.

Greece says without the loan payment, it will default and slip into bankruptcy.

On Sunday, Greece’s finance ministry said the country will miss its deficit reduction goal by nearly a full percentage point, sparking stock plunges on world markets Monday.

Greece has imposed a series of austerity measures including spending cuts and tax hikes. Many Greeks are weary of the new measures that have eliminated government jobs and cost them more money.

The government’s proposed 2012 budget includes eliminating 30,000 government jobs by the end of next year.