Talks on Greek debt amid euro quit rumours

AN EMERGENCY meeting to discuss the Greek economic crisis was under way in Luxembourg last night amid rumours that the country may be preparing to abandon the euro.

Reports that Athens was considering some form of debt rescheduling which would include returning to the drachma were denied by Greece and Germany, but a number of EU finance ministers and officials were attending the meeting. Ireland’s Michael Noonan was not, a government spokesperson said.

Any agreement to give Greece more time to repay its debt could open the door for Ireland to make a similar request, easing the cost to the taxpayer. But it was not clear last night if this would be an option. There has been continuing speculation that Greece, loaned €110 billion a year ago by the EU and the IMF to avert a default, must reschedule its €340bn debt or have some kind of controlled default if it is to recover.