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EU finmins to discuss Greek aid



By Luke Baker
15 March 2010 @ 12:08 pm BST

Just over half the 1,008 people surveyed for the Greek newspaper Ethnows said last week's 4.8 billion euro (4.4 billion pound) package went in "the right direction," while 41.9 percent said it did not. Many said unions should tone down their opposition.

Policymakers are also worried the problems in Greece could further undermine confidence in the euro and spread to other heavily indebted euro zone countries such as Portugal or Spain.

The German government spokesman said Monday's meeting would also not get into the details of funding for a European Monetary Fund, an idea that has been proposed by Berlin as another measure to help protect euro zone countries with debt troubles.

Discussing reforms needed to shore up the group's rules, German Finance Minister Wolfgang Schaeuble reiterated that it should eventually be made possible, in extreme cases, for a state to leave the euro zone if it fails to manage its finances.

"We need tighter rules," he told daily Bild. "That means in an extreme case, the possibility that a country that does not get its finances in order at all leaves the euro group. Such a prospect alone would ensure a totally different kind of discipline."

(Writing by Luke Baker, editing by Patrick Graham)

© 2010 Thomson Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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