ECB's Weber urges swift Greek aid to prevent contagion

[Ghost Dog]

Source: Reuters

BERLIN (Reuters) – ECB Governing Council member Axel Weber said on Thursday there was no acceptable alternative to rescuing Greece and urged quick approval of an aid package to prevent market upheaval and contagion to other states.

A leading German parliamentarian expressed confidence that the Bundestag could move quickly to approve aid despite deep reservations in Germany about helping Greece, as momentum toward a long-delayed rescue appeared to build.

The euro currency, which fell to a one-year low of $1.3114 on Wednesday, steadied in Asian trading, pushing back above $1.32, but yield spreads between benchmark German bonds and those of fiscally-strapped euro-zone countries like Spain remained under pressure.

Weber, who is president of the German Bundesbank, warned in German daily Bild that a Greek debt default would have "incalculable" consequences for financial markets and other states.

Read more: http://news.yahoo.com/s/nm/20100429/bs_nm/us_greece