France offers support for Greece amid bailout tensions

[webfact]

France offers support for Greece amid bailout tensions
SYLVIE CORBET, Associated Press

PARIS (AP) — France's Socialist government offered support Sunday for Greece's efforts to renegotiate debt for its huge bailout plan, amid renewed fears about Europe's economic stability.

The backing was a victory for Greek Finance Minister Yanis Varoufakis, striking a more conciliatory tone as he seeks new conditions on debt from creditors who rescued Greece's economy to save the shared euro currency. Worries have mounted that Greece's new far left government might not pay back its debts.

Varoufakis is also visiting London and Rome — and in a sign that his government may be trying to avoid a collision course with key creditors, he said Sunday that he would visit Berlin and Frankfurt as well. The German government has been particularly angry at the new Greek government's position and bluntly rejected suggestions that Greece should be forgiven part of its rescue loans.

Varoufakis insisted that Greece wants to pay the money back, but said he wants new terms and new negotiating partners, arguing that it's not worth discussing with the technocrats from the so-called "troika" of creditors who set the strict terms for Greece's rescue.

France's Socialist leadership, whose president has campaigned against austerity, presented itself Sunday as a possible "link" between Greece and creditors.

French Finance Minister Michel Sapin insisted his country wouldn't support canceling the debt, but offered backing for a new timeframe or terms.

"France is more than prepared to support Greece," Sapin said after meeting Varoufakis, saying Greece's efforts to renegotiate were "legitimate." Sapin urged a "new contract between Greece and its partners."

Greek Prime Minister Alexis Tsipras and his new government have worried financial markets and German and other European officials by pushing to scrap painful budget cuts and rethinking the debt. Tsipras sought to calm worries Saturday after days of increasingly heated discussions, and he too is heading to European capitals for talks in the coming days.

Greek government spokesman Gavriil Sakellaridis said Sunday's meeting in Paris "proves that the positions of the Greek government are now finding fertile ground in Europe."

Varoufakis announced that he has retained financial consultants Lazard as advisers to the Finance Ministry on public debt and fiscal management.
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Demetris Nellas and Elena Becatoros in Athens, Geir Moulson in Berlin and Angela Charlton in Paris contributed to this report.


-- (c) Associated Press 2015-02-02

[FRR]

"The problem with socialism is the eventual you run out of other peoples money"

Appears that Lady was right.

[shaurene]

France is backing them because France will be in the same boat soon.

[wabothai]

France had better take care of its own before it is too late.

[Lukecan]

bwahahahahahahaha

[PepperMe]

France is paying lip service to fool the people into thinking it is sympathetic to the eurosceptic cause and to curtail the huge rise in Marine Le Pens FNP.

[Paulc01]

France seems ever so eager to let the Greeks get away with stealing the Germans' money. Wonder how the Germans are going to like that. Panzers in the Ardennes again?

[retarius]

The EU are desperate to avoid a Greek default as their banks would come under huge pressure, especially Germany and France.....but the real killer would be a default by Russia as well, then the German banks would be up delete-creek without a paddle.

[Ulic]

Simple, France can write of the debt owed by Greece to French banks. No problem.

As for Greece not wanting to deal with the Troika who lent them the money, that is just a laugher.

The EU should write off the debt, boot Greece out of the EU. Companies should not ship anything

to Greece unless fully paid in advance. Move on. Greeks have learnt nothing. It is voting for political

parties that promise the moon that has got them into the position they are in.