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Old 06-15-11, 04:42 PM   #40
Gerald
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Greece crisis: Commissioners 'fear future of eurozone'

EU commissioners have a "profound sense of foreboding" about Greece and the future of the eurozone, a leaked account of a meeting has suggested.

The account, seen by BBC News, said this was in reaction to the "damning failure" of eurozone ministers to agree a new bail-out for Greece last night.

It was written by an official who attended Wednesday's gathering of commissioners in Brussels.

The author warned that the markets would now "smell blood".

The European Commission said it would not comment "on anonymous interpretations of meetings".

The document said that the planned second Greek financial rescue package on top of last year's 110bn-euro (£161bn; £98bn) bail-out would dominate the forthcoming European Council meetings next week.

It added that any default on Greek government debt - as espoused by Germany - would leave the Greek banks insolvent and "threaten the viability of the ECB [European Central Bank] itself" which owns 49bn euros of Greek bonds.

http://www.bbc.co.uk/news/business-13781390


Note: Update Record, 15 June 2011 Last updated at 15:48 GMT
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