Europe shifts to examine broad, radical steps on Greece

Alarmed by a worsening of the euro zone debt crisis, policymakers and bankers are examining radical proposals to rescue Greece that include a sharp cut in its debt burden, ways to prop up banks and a new emphasis on boosting Greek growth, official and banking sources say.

They are far from reaching a consensus. There is no agreement so far on how private investors would contribute part of the cost, or even on when euro zone leaders will next meet to discuss the rescue.


But the proposals appear to be a step forward because they indicate talks are now focusing on a comprehensive settlement that would seek to end financial market uncertainty over Greece immediately, rather than -- as with previous rescue plans -- keeping Greece afloat until a permanent solution can be found months or years from now.

"Markets are driving this debate, no longer politicians," said one banker.

Note EU-Digest: the actual problem is that the financial community and so called "marketing forces" should not be driving the debate.

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