In his first and only interview since taking office, Greek Prime Minister Lucas Papademos took straight aim at those who suggest Greece should abandon the euro and return to the drachma as a way to solve the country’s fiscal crisis: “This is really not an option.”
Papademos also expressed complete confidence in his country’s ability to get through what is likely to be a harrowing two months as it approaches a 14.5 billion euro debt repayment in March. ( Click here for full interview transcript .)
Two different financial deals must be negotiated before then. Without both, his country is likely to default—which would make it the first in the euro zone to do so, not to mention the largest sovereign default in history.
Greece is at the epicenter of the European financial crisis and how Papademos handles the situation is being closely watched by market participants around the world.
Failure on his part and on the part of the Greek government to manage their debt crisis is an orderly way, would have economic consequences across the European Union.
But Papademos is unperturbed. And he thinks the country is well on the way to avoiding a March default.Page 1 of 10 | Next Page