Yen and swiss franc gained as concerns grew that efforts to resolve Europe’s debt crisis may stall after election results in Finland showed gains for a euro-skeptic political group.
Finland’s Justice Ministry said support for the True Finns, whose leader Timo Soini says taxpayers shouldn’t have helped rescue Greece or Ireland, jumped to 19 percent in elections yesterday. A permanent bailout fund for indebted euro-area nations requires approval from all 17 members of the bloc.
Greece may not be able to avoid restructuring its debt before summer’s end, said Otto Fricke, the parliamentary budget spokesman for Chancellor Angela Merkel’s Free Democratic Party coalition partner.
“The big question is: Will Greece make it through summer without buckling and having to find some means of restructuring its debt?” Fricke said today by phone. “The signs aren’t good, though I defy any easy predictions.”
“Restructuring is not an issue we’re discussing,” Finance Minister George Papaconstantinou said in an April 16 interview in Washington.
The statement was supported by European Union spokeswoman Chantal Hughes who told reporters in Brussels today that “restructuring is not an option that’s on the table.”
Later Greek official said restructuring is a matter of time. Greece ultimately will not be able to avoid restructuring its sovereign debt, an unnamed Greek government minister told the German daily Die Welt in an interview to be published Tuesday.
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