UK

Greek stand-off ‘biggest risk’ to global economy - Osborne

British finance minister in ‘constructive discussion’ with newly-elected Greek counterpart

Greek finance minister Yanis Varoufakis (left) leaves after meeting with Britain’s Chancellor of the Exchequer, George Osborne, at Downing Street in London. Photograph: Peter Nicholls/Reuters
Greek finance minister Yanis Varoufakis (left) leaves after meeting with Britain’s Chancellor of the Exchequer, George Osborne, at Downing Street in London. Photograph: Peter Nicholls/Reuters
Mon Feb 02 2015 - 14:16

British finance minister George Osborne said on Monday that a stand-off between Greece and the euro zone over Greek debt was fast becoming the biggest risk to the global economy.

“We had a constructive discussion, and it is clear that the stand-off between Greece and the euro zone is the greatest risk to the global economy,” Mr Osborne said after meeting Greek finance minister Yanis Varoufakis in London.

“I urge the Greek finance minister to act responsibly but it’s also important that the euro zone has a better plan for jobs and growth,” Mr Osborne said.

“It is a rising threat to the British economy. And we have got to make sure that in Europe as in Britain, we choose competence over chaos.”

READ MORE

Meanwhile, Greek prime minister Alexis Tsipras will take up his quest for a debt deal on Wednesday when he meets with European Commission President Jean-Claude Juncker, EU spokesman Margaritis Schinas said today.

Mr Juncker and Mr Tsipras will meet in Brussels at 9.30 a.m. local time. That follows an hour-long informal meeting Sunday between Greek Finance Minister Yanis Varoufakis and EU Economic Commissioner Pierre Moscovici, Mr Schinas said, describing the talks as “an initial and constructive exchange of opinions.”

Any solution that emerges must pass muster with all 19 euro-area nations, said Mr Schinas, a spokesman for the Brussels-based commission.

He told reporters that “we are ready to hear the Greek government’s concrete plans and to have constructive discussions on the next steps.”

The EU’s starting point for talks is Mr Tsipras’s January 31st pledge to seek a “mutually beneficial agreement“ for Greece and Europe as a whole.

The Greek leader said Greece won’t act unilaterally and won’t duck its obligations to the European Central Bank or the International Monetary Fund.

That leaves the euro-area nations that funded most of the country‘s financial rescue as the focus for the debt writedown that Mr Tsipras is seeking. Many of the finance ministers, who must agree unanimously for any deal to proceed, have said they’d consider easier terms but not outright loan forgiveness.

Agencies