Greek deficit 'endangers' euro, EU commission says
Rahvusvahelised uudised 25 Jan 2010  EWR
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Valentina Pop, EUObserver

Soaring public deficits in euro countries such as Greece weaken the credibility and "endanger" the cohesion of the common currency, according to a leaked European Commission paper. Meanwhile, the Greek finance minister has rejected speculation that his country might leave the eurozone.

Growing imbalances between countries within the common currency are a "matter of serious concern for the eurozone as a whole," a paper drafted by the commission's economic and financial unit for the EU's finance ministers and obtained by German paper Der Spiegel says.

These imbalances "can weaken confidence in the euro and endanger the cohesion of the monetary union," it warns.

In particular, Brussels' experts are worried about countries with soaring public deficits: Greece, Ireland and Spain.

Continue reading here:
http://euobserver.com/9/29328
 
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