Euro Finance Chiefs Poised to Grant Greece Extension

Greek politicians still squabbling over further austerity measures.

Euro-area finance chiefs may cut Greece some slack in meeting its bailout targets even as they split on whether the country needs another debt writedown and Greek politicians squabble over further austerity measures.

With Greece facing an unprecedented sixth year of recession, fellow euro-area governments are preparing to allow Prime Minister Antonis Samaras’s government “a somewhat flatter adjustment path” in achieving its deficit-reduction goal, said Thomas Wieser, head of the group that prepares meetings of euro-area finance ministers.

Cutting Debt

Policy makers are trying to work out a plan that will cut Greek debt to 120 percent of gross domestic product by 2020 from about 144 percent now amid the worst recession in a generation. Failure to hit the debt target could see the IMF withdraw aid, sparking another wave of speculation about Greece’s future in the euro.

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