Former Eurogroup chief and candidate for European Commission president Jean-Claude Juncker did not rule out the prospect of a new haircut for Greece's debt in an interview with Germany's Stuttgarter Zeitung.
In the interview, Juncker noted that economic support programs are often accompanied by "excessive social harshness" but said he believed that Greece was on the right course to recovery. He added that the troika did not spend enough time assessing the situation on the ground in countries such as Greece, Portugal and Ireland and pledged that, as EC president, he would seek to ensure that studies of the social repercussions of such programs are carried out.
Asked whether Greece could be eligible for another haircut on its debt, if it meets its memorandum commitments, Juncker said, "It is not something that I would wish on any Eurogroup president to do again but it's not something that I rule out absolutely."
However, Juncker did rule out the issuance of Eurobond, saying that when he broached the issue in 2010 there were "no tools for defense against the crisis." "Things aren't like that today," he said.