According to Der Spiegel, some of Europe's finance ministers last week raised the issue of restructuring the debts of Greece. Apart from this, ECB President Trichet has spoken out strongly against such an outcome, saying that it will cause yet another crisis of confidence in the euro area and jeopardize the stability of the banks that now have large numbers of Greek bonds. Trichet's obstinacy reflects the persistence of some eropeyskih finance ministers, especially the German Schauble. Germany is not seeking to increase its amount of financial assistance already provided by the Greeks. It will be interesting to observe how the opposition Trichet hold out in the coming months as we approach the end of his presidency. Although in itself restructuring will not be a surprise to many - indeed the inevitability of this outcome is not discussed, it is open only question is what will reduce the debt holders.
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