EU ministers press Greece on extra deficit cuts

Sweden’s finance minister said on Tuesday Greece’s deficit-reduction plan was not enough, raising pressure on Athens to do more to prevent a swollen debt and broader financial market trouble from getting out of hand.

As European Union finance ministers met in Brussels, Luxembourg’s Jean-Claude Juncker also vented frustration at the “irrational” behavior of financial markets that have driven the euro lower and bond yields higher in response to Greece’s woes.

Greece is the first country in 11 years of European monetary union to require a political pledge of support as fears over its bloated debt sparked a market attack that makes it even harder for it and other governments to service their debt.

With two lots of sovereign debt of more than 8 billion euros each to refinance on the markets in April and May, Athens is on the frontline, and markets also have other euro zone countries such as Spain and Portugal in their sights.

Reuters

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