Europe vows to aid Greece, but is unsure of how to help

Press quote (New York Times)
10 February 2010

"At this junction they will have to support Greece," Simon Tilford, chief economist at the Centre for European Reform, said of Europe's politicians. "If you have encouraged the markets to believe that support is forthcoming and then it is not, we will see a backlash" in financial markets. Though Mr Tilford said the markets would ideally like to see some form of guarantee extended to Greek loans, he added that this would probably be too much for the government in Berlin. The most likely outcome was a loan facility extended on condition that changes were undertaken by the government in Athens. It would also need to apply to other countries facing similar ills.