NICOSIA, Cyprus (AP) — Greece may get more time to cut its budget, its creditors indicated Friday in another sign of increasing flexibility and optimism across the 17 countries that use the euro, while Spain appeared to be inching closer to making a formal request for financial assistance.
The new Greek coalition government is seeking a two-year extension to meeting a budget reduction program to 2016, as the country's recession is proving worse than anticipated at the time the program was negotiated.
Jean-Claude Juncker, the head of the eurogroup of finance ministers, told a press briefing following an informal meeting in the Cypriot capital, that the report from the "troika" of the European Union, European Central Bank and the International Monetary Fund is unlikely to be ready before the beginning of October, pushing on a decision on Greece's bailout loans into the second half of October.
The ECB bond-buying plan, the creation of a new government in Greece following two elections and a German court ruling in favor of Europe's new bailout fund have all calmed markets and politicians nervous at the eurozone's debt problems.
"De Guindos also informed the eurogroup today that the Spanish government intends to adopt a national reform program by the end of September based on recommendations of the European Union, with very clear commitments and precise timetables," Olli Rehn, the European commissioner for monetary affairs, said.
The new Greek coalition government is seeking a two-year extension to meeting a budget reduction program to 2016, as the country's recession is proving worse than anticipated at the time the program was negotiated.
Jean-Claude Juncker, the head of the eurogroup of finance ministers, told a press briefing following an informal meeting in the Cypriot capital, that the report from the "troika" of the European Union, European Central Bank and the International Monetary Fund is unlikely to be ready before the beginning of October, pushing on a decision on Greece's bailout loans into the second half of October.
The ECB bond-buying plan, the creation of a new government in Greece following two elections and a German court ruling in favor of Europe's new bailout fund have all calmed markets and politicians nervous at the eurozone's debt problems.
"De Guindos also informed the eurogroup today that the Spanish government intends to adopt a national reform program by the end of September based on recommendations of the European Union, with very clear commitments and precise timetables," Olli Rehn, the European commissioner for monetary affairs, said.
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