After the emergency summit of finance ministers held in Luxembourg, Europe could infuse more funds into Greece. The country remains in the Euro area.

EU member-states might provide more financial aid to Greece, while the country tries to reduce its fiscal deficit and its huge debt to foreign creditors amounting to 158 % of GDP. Greece became the first Euroarea country which received a bailout loan in May last year. "We believe that Greece needs a further adjustment programme," stated Luxembourg's Prime Minister, Jean-Claude Juncker, who heads the group of Eurozone finance ministers after the emergency summit held in Luxembourg. The reason for this statement was an article posted in the Der Spiegel weekly newspaper, stating that Greece is threatening to leave the Euroarea.

"We have not been discussing the exit of Greece from the Euro area. This is a stupid idea. There is no way," stated Juncker. "We don't want the Euroarea to explode without a reason.''. The Greek Finance Ministry also denied the publication in the German edition.

The additional Greek adjustment programme should be discussed in detail and, for this purpose, another meeting of finance ministers will be convened this month. The Eurogroup President, however, denied that discussions were held on the option of Greek debt restructuring.
In April, the rates of Greek bonds suffered a new blow on the International Bond Markets after Portugal agreed on the terms and conditions of its bailout package from the EU and the IMF. Thus, it became the third Eurozone country seeking financial assistance.

In the restructuring of Greece's debt, however, the biggest losers will be the creditors - mostly European banks. On the other hand, British and other financial companies with smaller exposures to Greece are exerting strong pressure on Athens for debt restructuring.
Such a move would lead to a slump in the exchange rate of the Euro.

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