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Juncker warns euro crisis could spread to Belgium

BERLIN : Eurogroup head Jean-Claude Juncker warned on Saturday that the euro crisis which has struck Greece and others

Published June 18, 2011 Updated June 18, 2011 09:26am

1 min

By Muhammad Iqbal

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Luxembourg Prime Minister Juncker, who heads the group of eurozone finance ministers, said that the problems which have forced Greece, Ireland and Portugal to seek emergency bailouts from the European Union and the IMF could also hit, "due to their high levels of debt, Belgium and Italy, even before Spain," which has been touted as the next in line for possible help.

In an interview with the German daily Suddeutsche Zeitung, Juncker also warned against obliging private creditors to take part in a second bailout package which is being planned for Greece, warning that ratings agencies would see such a move as a debt default.

That could have catastrophic effects for the euro, he warned; "we are playing with fire."

If Greece was deemed to be a defaulter that would have drastic consequences for the rest of the eurozone, he added.

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