According to a senior Eurozone government official, the EU is prepared to drop the voluntary restructuring procedure, with the possibility of Greek debt restructuring to be forced “if needed”. The source added that the Greek debt deal should be announced early next week, with cuts to be set at 50% and EU leaders are to decide on a EUR 30bln payout for Greek collateral on January 30th after discussing the second bailout.
ECB’s Nowotny says pressure to reduce Austrian debt is ‘acute’. Spanish Prime Minister Rajoy may need to skirt Spanish law to backstop the nation’s indebted regions, closely mimicking the EU’s technique of dodging its no-bailout rule to save Greece, Ireland and Portugal from default.
The Italian Prime Minister has said he predicts anti-European protests in Italy, unless Italian citizens soon see clear benefits resulting from their willingness to step up savings and accept the economic revamp. (Die Welt)
Italian Social Democrat Party calls for an exit from the Euro. d’Andria, the leader of the Italian Social Democrat party will hold a press conference in Rome at 1130GMT today to announce the shift.
Greece could still drag Europe into a deeper financial crisis and the country’s exit from the Eurozone is possible this year, according to Fitch Ratings. (Ekathimerini)