EU not laying ground for Greek exit

The European Union is not laying the groundwork for a Greek exit from the eurozone, Economic Affairs Commissioner Pierre Moscovici insisted Thursday.

"There are no preparations for a 'Grexit'," Moscovici told AFP.  

"There is no 'Plan B' ... The position of the European Commission is still that Greece has its place in the eurozone. We work on that basis."

Moscovici was commenting after two senior international Monetary Fund officials earlier this week suggested that, while a Greek exit is not ideal, if it happens Europe should take the chance to move toward a full fiscal and political union.

Moscovici admitted, however, that negotiations between the EU and Athens to keep Greece funded and avoid a disastrous debt default, were moving "too slowly."

The target date for a deal is the April 24 Eurogroup meeting in Riga, Latvia.

Greece wants new funding of $7.2 billion euros ($7.8 billion) to keep afloat and repay its debts to the IMF and European Central Bank, but has balked at tough reform conditions demanded by its official creditors.

Moscovici said still many details need to be worked out: "Time is running out ... It is absolutely crucial to record solid progress."
Source: AFP