G7: Europe must rescue Greece

The Times
"FINANCE ministers and officials from the G7 countries, meeting in Canada yesterday, insisted there would be a “European” solution to the problems affecting Greece, Portugal and Spain and no need for an IMF rescue.“We told our partners we had to solve the problem ourselves,” said Jean-Claude Juncker, chairman of the Eurogroup of finance ministers. The difficulties in Greece extended to Portugal and Spain last week, with credit spreads widening sharply, provoking a plunge in local stock markets.Wolfgang Schaeuble, the German finance minister, said the problems would not undermine the euro but warned that Greece would have to make sacrifices.“The euro will stay stable: markets always tend to overreact,” he said. “Greece has to realise that when you break the rules over a long period of time, you have to pay a high price.”