Lack of Trust Hurting Greek Economy

While Greece’s financial stability is the most obvious and immediate concern, confidence—or a lack thereof—is a major issue and a growing part of the equation as the rest of the world’s leaders circle the wagons in an effort to rescue this tiny country.

Markets back Greek bailout hopes but German schism could still derail deal

Greek hopes of winning the final go-ahead for a new €130bn (£108bn) bailout when eurozone finance ministers meet on Monday could be shattered even though Athens has agreed to further bruising savings.

EU Van Rompuy: Guaranteeing Financial Stability Key To Growth

BRUSSELS (Dow Jones)--European leaders are working on a "comprehensive package" to restore confidence in euro-zone debt markets and in the region's banks, European Council President Herman Van Rompuy said Monday ahead of a key summit.

"For weeks the commission and I have already been working on a comprehensive package to create more confidence in the financial sector and in the sovereign bonds of countries under pressure," he said alongside President Jose Manuel Barroso, president of the European Commission, the executive branch.

Greece Only Discussing Cash Collateral With Finland

ATHENS (Dow Jones)--Discussions between Greece and Finland over a deal to provide Helsinki with collateral in exchange for the Nordic country providing fresh aid are focused only on cash collateral and don't involve any property rights, Greece's finance minister said Wednesday.

"We are only speaking about guarantees of a financial nature...and guarantees that do not include claims on property," Evangelos Venizelos said in a radio interview.

No Progress This Week On EFSF Collateral - EU Source

BRUSSELS (Dow Jones)--Euro-zone policymakers haven't made any progress this week on resolving Finland's demand for collateral for contributing to Greece's second bailout, according to a person familiar with the situation.

Euro-zone governments are discussing alternative forms of collateral that could meet Finland's requirements for participating in the bailout after a bilateral deal reached earlier between Greece and Finland was rejected by key member states, including Germany and the Netherlands.

Minister drags Berlin into euro crisis collateral row

(Reuters) - A minister in Angela Merkel's conservative party propelled Germany into a debate about guarantees on bailout payments to Greece, backing a demand from Finland for collateral, but Berlin distanced itself from her comments.

Labour Minister Ursula von der Leyen, also a deputy president of the chancellor's Christian Democrats (CDU), told German TV on Tuesday that future bailouts should only be made against guarantees.