Eurozone governments warned on bail-outs

Eurozone governments should not assume the private sector will participate in a new Greek bail-out deal, the European Central Bank warned on the 7 July 2011, escalating its conflict with Eurozone Finance Ministers over the future of the indebted country. The ECB added that the eurozone should follow 'global doctrine' on bail-outs for crisis-hit nations.

The ECB President's comments were the closest so far to suggesting publicly that governments abandon attempts to involve commercial banks without ratings agencies declaring a selective default. So far no deal had been struck, despite a series of emergency meetings across Europe in June and July 2011.

ESO: Background information: Trichet seeks way out of dilemma http://www.europeansources.info/record/trichet-seeks-way-out-of-dilemma/

ESO: Background information: Find other Commentary Features in ESO on Challenges facing EMU http://www.europeansources.info/advSearchLink?keyword=commentary%20feature%20emu%20challenges%20&searchOption=all

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: ECB will continue to accept Greek debt / Greek bail-out holds ‘impossible knot’ http://www.europeansources.info/record/ecb-will-continue-to-accept-greek-debt-greek-bail-out-holds-impossible-knot/

Kathimerini, 7.7.11: Parliament to vote on new loan deal by end of September http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_23735_07/07/2011_397551

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