Germans plan for Greek debt shake-up

Article reports that Germany was drawing up plans in April 2011 to restructure Greece’s sovereign debt in the event that Athens’ economic reforms failed to heave the country out of its budget crisis.

These intentions would fly in the face of the European Central Bank, which feared that asset write-downs could trigger a financial crisis at a time when the banking system was still bruised from the last crisis.

However, EurActiv reported that pressure on financially weak eurozone members rose sharply on the 18 April 2011 amid growing speculation that Greece would restructure its debt and after the Finnish vote in its general election of 17 April 2011 showed mounting public opposition in northern countries to more bailouts of economies in southern Europe.

EurActiv, 19.4.11: Eurozone crisis escalates amid Greek debt fears http://www.euractiv.com/euro-finance/euro-zone-crisis-escalates-amid-greek-debt-fears-news-504166

Kathimerini, 18.4.11: Restructuring neither necessary nor desirable http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_9930_18/04/2011_388025

Kathimerini, 17.4.11: Greece may have to play hardball http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_31091_17/04/2011_387941

ESO: Background information: Greek goal of return to market in doubt http://www.europeansources.info/record/greek-goal-of-return-to-market-in-doubt/

Kathimerini, 16.4.11: Berlin denies secret plans for Greek restructuring http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_22578_16/04/2011_387878

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