For Greek Debt Crisis, Bank Tax Among Measures Proposed

Two days before a summit meeting in Europe to discuss a second rescue package for Greece, a confidential paper outlined some of the strategies being considered to stem the tide of debt. These strategies included a tax on euro zone banks and loans with longer terms and lower rates.

Reuters reported that the paper also indicated that other strategies remained in consideration, including those that could trigger default—either selective or full. Detailed proposals are to be discussed on Wednesday, with finance ministers intending to determine a course of action in Thursdays meeting that will not only deal with Greece but will also halt the spread of contagion in the euro zone.

Jean Leonetti, European affairs minister for France, said in the report that the bank tax was one of several options under consideration. It would allow the euro zone to raise money to help with the bailout. Since it would avoid many of the consequences of other possibilities, it “deserved to be studied,” he said, continuing, “It’s one of the solutions we are looking at. It would have the advantage of not making us intervene directly with the banks and therefore potentially not triggering a default.”