Summary Standoff between Greece and eurozone over the country's bailout is endangering the global economy.
LONDON: (AP) - Britain s Treasury chief said Monday the standoff between Greece and the eurozone over the country s bailout is endangering the global economy.
George Osborne urged Greece s Finance Minister Yanis Varoufakis to act responsibly in his quest to have eurozone countries ease the terms of their bailout. But he also urged eurozone counters to come up with a better plan for jobs and growth in Greece.
"We had a constructive discussion, and it is clear that the stand-off between Greece and the eurozone is the greatest risk to the global economy," Osborne said.
Varoufakis took office last week after the radical left Syriza party won parliamentary elections, alarming investors and eurozone governments. Party leader and new Prime Minister Alexis Tsipras has said he wants to end years of budget austerity that eurozone countries and the International Monetary Fund had required in exchange for 240 billion-euro ($270 billion) in rescue loans. He also wants to renegotiate payment of the bailout debt.
Greece s finance minister will meet with investors and fund managers in London on Monday as he continues his tour of European capitals in hopes of drumming up support for his government s demands.
Though Britain is not part of the euro, Varoufakis sought to build rapport with Osborne with face-to-face talks. Downing Street said Britain s position is one of continuity and that Greece should honor the terms of its bailout.
Tsipras on Monday struck a more conciliatory tone, meanwhile. He says the Greek people expect him to carry out tough negotiations with eurozone creditors, but "within a European framework."
Tsipras ruled out suggestions that his government may reach out to Russia for a loan, saying his government s primary objective is to conclude a deal with Greece s European partners and "all those who have loaned to our country and to whom our country has obligations."
Tsipras said he was surprised many "powerful European forces" back his government s call for a policy about-face from austerity to growth-oriented policies.
But he condemned creditors demands for painful budget measures in exchange for the loans, saying "people need room to breathe."
