Brussels/BERLIN (Reuters) - the European Union seeks to lower interest rates on loans to rescue in Greece and Ireland and is working on a second door relief in Athens in a chaotic effort to prevent a disorderly debt restructuring.
The Executive of the European Commission, said Monday he hoped to see a decision within weeks on the reduction of the rate charged to the Ireland to make more sustainable debt of Dublin.
"The Commission is clearly for lower rates," said a spokesman for EU economic and Monetary Affairs Commissioner Olli Rehn. "The Commission is against the debt restructuring."
Submission of the new Irish Government for lower interest payments has so far been blocked by the Germany and the France, who want to Dublin to abandon the right of veto on the harmonization of the tax for companies in Europe in Exchange or to raise its own rate low corporate tax.
In Germany, a legislature than the Conservative Party of Chancellor Angela Merkel said another cut of the rate on emergency loan to the Greece, already reduced by a percentage point in March, would be justified if it carried out more reforms to reduce its debt risk.
Michael Meister, finance policy spokesman Christian Democrats in Merkel, told German radio he is opposed to any idea that Athens should restructure its debt or that it should consider leaving the euro.
However, the German Finance Ministry spokesman Martin Kotthaus told a press conference: "there is no discussion at this time to extend the payment schedule or to lower the interest rate for the Greece."
Calls to low interest rates came after a group of decision makers of top euro-zone has been non-so-secret talks at Luxembourg on Friday evening on the way to the currency bloc deepen the crisis of the sovereign debt of the stem.
The cost of insuring Greek, Irish and Portuguese debt against default rose again Monday as market jitters hardened on the risk that the Greece may have to restructure its debt, forcing investors to take losses.
European shares fell in the middle of the signs that eurozone States three in intensive care are staging a war of auction for easier terms by pointing the concessions to each other.
The trac also followed a report by German magazine Der Spiegel, alleging that the Greece considering leaving the euro, which attracted denials indignant Athens and EU Ministers.
ANGELA MERKEL TO MEET EU TOP BRASS
A German Government spokesman, said that Mrs Merkel would meet, President of the European Commission José Manuel Barroso, head of the executive body of the EU and President of the European Herman van Rompuy, who chairs the regular summits of the blockon Wednesday to examine the situation.
Output Greek euro was never under discussion and was not now, he said at a press conference.
The euro area and EU Finance Ministers are due to meet the week next to approve the program of the Portugal in the Middle persistent uncertainty if the Finland, that an interim Government and has not yet begun negotiations for a new coalitionwill be able to give the required agreement.
Pressure is mounting for these meetings deliver decisions on the Ireland and the Greece as well.
In response to the wrath of some countries which are not invited to the talks Friday, a spokesman for the German Finance Ministry insisted there was no attempt to create a eurozone of two classes.
The Finance Minister Greek George Papaconstantinou, who attended the meeting of Luxembourg, said investors did not believe that his country could return to the capital markets of the next year, as foreseen in its plan of EU and the IMF, so it may be necessary to alternative financing.
Jean-Claude Juncker, President of the Eurogroup of Finance Ministers of the 17-nation euro zone, said after the talks Friday there was a consensus that Athens would require a second rescue operation.
"We believe that the Greece not need another adjustment program," he said after meeting with Ministers of the Germany, France, Italy, Spain, and the EU Rehn President of the Central European Bank, Jean-Claude Trichet.
He gave no details, but a source in the euro area said a review idea was for the relief fund of European financial stability facility to buy Greek bonds on the primary market for the next year issuancein exchange for a new form of guarantee.
Greece, which has a mountain of debts of 150% of the gross domestic product, is supposed to raise 27 billion euros in the market in 2012, according to the rescue plan existing.
Market analysts are convinced that Athens must reduce its debt substantially by a mixture of rescheduling of the deadlines, rates low interest and eventually convincing private investors to take voluntary loss to avoid a messy failure.
Some believe also is unable to repay its debt, set to 120% of GDP in Ireland and will be facing political pressure to make the holders of Bank share the cost of mounting.
On Sunday, an Irish Minister said that Dublin a look to see what he can win his rescue EU/IMF plan if the Greece is given a new contract to solve the crisis of concessions.
Minister of energy Pat Rabbitte said he hoped that Ireland won a 1 percentage point cut in the rate that is paid on some 40 billion euros of loans from the EU at the meeting of Finance Ministers of the EU.
(additional reporting by Stephen Brown in Berlin, Dina Kyriakidou Athens, Crimmins Carmel in Dublin and William James in London; written by Paul Taylor and Mike Peacock-mounting)
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