Fears of Greek Bankruptcy Unfounded: Euro Chief

Fears that Greece faces imminent bankruptcy are unfounded but the country must take "harsh" measures to shore up its economy, Eurogroup chairman Jean-Claude Juncker said on Sunday, Agence France-Presse reported. Greece's widening public deficit and a huge official debt has unsettled European market watchers, particularly regarding the standing of Greek government debt bonds. The concern intensified after the recent debt crisis in Dubai. Greece has been singled out for its last-minute revelation of a public deficit expected to surge to 12.7 percent of output this year, and a ballooning debt which amounts to 113 percent of gross domestic product. The country was already under EU excessive deficit supervision since April, long before the new socialist government caused an uproar in Brussels by claiming that the shortfall was over twice that reported by the previous conservative administration. Now the Greeks have been given until January to present a viable Stability Pact to Brussels. Read more.