More calls for Greece to restructure its debt

By Zhang Ming'ai

China.org.cn, May 18, 2011

Greece needs to restructure its debt if it wants further help, Herve Novelli, deputy general secretary of French ruling party the UMP, told China.org.cn in Beijing on Tuesday.

Greek government officials have consistently ruled out the possibility of debt restructuring.

But Novelli dismissed the idea that Greece might leave the European Union. "It would be a major crisis if Greece chooses to get out of EU. With the current level of debt, exiting the EU would mean higher interest rates. Greece would find it impossible to finance its debt," he said.

The EU has taken many steps to help Greece solve its debt crisis, Novelli said. "The EU as a whole will continue to help Greece. If we do not help Greece it would mean the end of the European Union," he said. "We have no other alternative. We need a strong European Union."

Greek Deputy Foreign Minister Spyros Kouvelis told China.org.cn via email that Greece is focusing on practical solutions to the debt crisis. "Talk is no good. It is action that matters," Kouvelis said.

"Instead of dwelling on disaster scenarios, Greece is getting down to work, revamping its priorities, reshaping its strategy around its comparative advantages, capitalizing on its vast human capital and resources."

"Every crisis is an opportunity. We are here stepping up to the challenge of modernizing our economy, looking outwards, changing orientation."

Novelli said there had been signs of economic recovery. "Europe is now performing better than a year earlier. There are a lot of improvements: Eurozone growth picks up and employment is also improving," he said. "We are beginning to see the end of the crisis."

Novelli is in China attending the second China-Europe High Level Political Party Forum which is being held in Beijing and Tianjin from May 16-18.