Greece Fears Collapse Of The Euro: Minister

by Magda Panoutsopoulou

ATHENS, Greece (AA) - Greek Alternate Minister for International Relations Euclid Tsakalotos said on Monday that failed bailout talks between Greece and its European creditors could lead to a collapse of the euro.

Speaking at an Economist conference in Athens, he said that the Greek ruling coalition has a pro-European strategy, and that his government wishes to avoid default, because "the worst result would be the collapse of the euro, the increase of rival nationalisms, competitive devaluations, a clear repetition of the 1930s, which are the reasons why a compromise with creditors needed."

But pressure from the European Central Bank, he noted, is creating a "difficult situation that not only undermines compromise, but it is also raising issues on the future of the euro."

For Tsakolotos, compromise is the most important goal. "A compromise solution both on an economic and political level requires a

prospect for Greece's recovery and growth."

Tsakolotos asked the country's partners for more time and room so that the Greek government can prove it will keep its promises for the deep reforms that it needs.

"On one side we need a monetary union that creates room for strategies of growth in the periphery and which addresses the debt issue. On the other hand, we know that even if all debts were written-off, Greece would still have a problem unless it implemented a great deal of reforms in many sectors."

He also referred to corruption and tax evasion, and stated that the government is prepared to deal with this chronic problem.

Tsakalotos blamed the previous governments for lack of will in resolving these issues.

Citing the will that the new government has to make the changes Greece needs, he said: "Greece is not asking for special treatment but for equal treatment in a Europe of equal partners."

www.aa.com.tr/en