WASHINGTON, D.C. – The United States has sided with international lenders and told Greece’s new government to impose reforms and strike a loan deal.
U.S. Treasury Secretary Jacob J. Lew urged Greece and the troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) to come to terms on measures that will keep the country in the Eurozone.
“There’s no doubt that if this leads to a crisis such as Greece leaving the eurozone, it will cause an enormous amount of disruption and hardship in Greece,” Lew said in an interview with the Bloomberg news agency.
“Even if the contagion risk is much less now than it was, say, in 2012 and earlier, it would not be a good thing in a world economy just recovering from a deep recession to have that kind of uncertainty introduced.”
Lew will meet on April 17 with Greek Finance Minister Yanis Varoufakis during IMF and World Bank meetings in Washington.
His admonition comes as a growing number of EU officials, especially German Finance Minister Wolfgang Schaeuble, whose country has put up much of the 240 billion euros ($260 billion) in two bailouts, doubt Greece can be saved.