Spanish PM: Need Clear Plan On Greek Private-Sector Debt
MADRID (Dow Jones)--Spanish Prime Minister Jose Luis Rodriguez Zapatero said Tuesday that the European Union must develop a clear plan to persuade private-sector holders of Greek debt to accept a voluntary reduction or extension in repayments.
At a press conference after a meeting with Herman Van Rompuy, the European Union's president, Zapatero said the continued uncertainty and debate on how to address Greece's debt problems is having a negative effect on capital markets.
Exploring different strategies for involving the private sector in relieving Greece's debt burden "is not the adequate path," he said. He said any plan to resolve Greece's debt problems must be firm and generate confidence and a sense of responsibility from the outset.
Spanish government debt yields have risen sharply in recent days amid growing fears about Greece's debt burden and fiscal pressures in other highly indebted countries in the euro zone.
Earlier Tuesday, German Finance Minister Wolfgang Schaeuble reiterated that further aid for Greece would depend on persuading private-sector creditors to share the burden.
"There will be no new program for Greece without a satisfactory contribution from the private sector," Schaeuble told a press conference after a meeting of European Union finance ministers in Brussels.