MercoPress. South Atlantic News Agency

Europe agrees to help Greece but loan guarantees have been ruled out

Luxembourg’s Jean-Claude Juncker, head of the group of Euro-zone finance ministers

Europe's finance ministers agreed Monday how to help Greece in its battle to control its finances. After a meeting in Brussels, they revealed few details, except that they had ruled out any loan guarantees.

However Luxembourg’s Jean-Claude Juncker, who heads the group of Euro-zone finance ministers, said he is confident that Greece won’t need to draw on European aid measures that are now in the works.

“What will happen if necessary, (and we’re still convinced it won’t be necessary), is that we’ll reach an agreement in the Euro zone to offer bilateral support in a coordinated form,” Juncker told reporters in Brussels late Monday after leading a regular meeting of ministers. “The Greek authorities haven’t asked for any financial help from the other Euro-zone members.”

“There are still a number of technical questions that need to be addressed. This will happen in the next few weeks,” Juncker said. “It’s very important for me to stress that we have not adopted this instrument because this will be a matter for the European Council.”

“We believe that if we adopted such an instrument, we will not need this instrument because the Greek consolidation measures are credible and we believe the financial markets will have to be convinced by them,” he said.

“The message to the market is not that Greece will be supported, in any case Greece would be supported if this would be needed,” Juncker said. “We don’t think that this will be needed, but we have to take a decision on the instrument.”

“The mechanism will not include loan guarantees,” he said. Juncker also said: “We have been very clear that Greece won’t be isolated or left alone. If the emergency came up concerning Greece, Greece will be helped by the Euro zone.”