Europe May Cut Greece Some Slack

Governments hint they may give Greece more time to achieve budget cuts

European governments hinted at giving Greece extra time to meet budget-cut targets, as long as the financially stricken country’s feuding politicians put together a ruling coalition committed to austerity.

Calling talk of a Greek pullout from the euro “nonsense” and “propaganda,” Luxembourg Prime Minister Jean-Claude Juncker said only a “fully functioning” Greek government would be entitled to tinker with the conditions attached to 240 billion euros ($308 billion) of rescue aid.

‘Big Problems’

Investors pummeled Greek stocks, pushing the ASE Index down 4.6 percent to 584.04 yesterday, the lowest since November 1992. The drop extended last week’s 11 percent plunge.

President Hollande

The euro ministers saluted Spain’s newfound resolve to clean up its banking system and agreed that “speed is of the essence” in completing that process, Juncker said.

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