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EU finance ministers: Greece must pay

January 26, 2015

Newly elected anti-austerity party Syriza wants some of Greece's debt forgiven. No way, say the eurozone's finance leaders.

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Symbolbild Europäische Bankenunion
Image: picture-alliance/dpa

At a meeting of eurozone finance ministers in Brussels on Monday, attendees spoke out against the idea of writing off Greek debt, just as Greece's new anti-bailout prime minister, Alexis Tsipras, was being sworn in.

Dutch Finance Minister Jeroen Dijsselbloem, who usually chairs these gatherings, told reporters that there was "little support" for forgiving Greek debt, although it may be possible to ease the terms of repayment. However, he emphasized that would only happen "if necessary."

Greece has borrowed 240 billion euros ($270 billion) to stave off bankruptcy since 2010. A great deal of this sum comes from its European neighbors.

Hans-Hoerg Schelling, Austria's finance minister, said the rest of Europe shouldn't be made to restructure its financial policy "just because a country like Greece has a problem." With the European part of Greece's aid program due to end in February, tough negotiations could be ahead if neighboring countries take a hard line against Greece's anti-austerity government.

Germany's Wolfgang Schäuble struck a more enigmatic note, saying: "Greece is still in the process of building a new government…the way ahead is not only a question of debt."

Schäuble added that growth was the most essential element - not only for Greece's recovery, but also for European stability in general. Like his colleagues though, he reiterated that Greece could not abandon its commitments.

Syriza does not want to leave the euro

Michael Noonan of Ireland, whose country also suffered a great deal as a result of the eurozone crisis and required a bailout, was sympathetic, and noted that debt restructuring was possible to ease the burden on ordinary Greeks.

"I have no doubt ... that there is sympathy for the Greek people," the Irish finance minister said, adding that "there will be a disposition among colleagues to be helpful."

Yanis Varoufakis, a member of the now-ruling far left Syriza, who is tipped by some to become Greece's next finance minister, tried to allay fears on Monday that his party wanted to leave the euro, a move nicknamed the "Grexit," which would greatly destabilize the currency. He said his party wished to convince euro partners that reducing Greece's debt burden would help growth, thereby benefiting everyone.

"We who are in the eurozone must not toy with loose or fast talk about Grexit or fragmentation…If that happens, disruptive forces would be unleashed," Varoufakis told BBC radio.

es/kms(AP, dpa)