Germany considers aid to Greece - reports

By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- The German government may offer an aid package to Greece and other debt-ridden European nations in an effort to stave off the default concerns that have stunted global markets, according to reports.

The Wall Street Journal, citing unnamed sources, said a loan guarantee plan would be led by Germany but completed along with European Union partners.

The threat of a default in Greece has given investors pause, as the effect would likely ripple to other members of 16-nation euro zone. Other debt-choked nations in the bloc include Portugal, Spain, Ireland and Italy.

European Union officials are set to meet Thursday to discuss the economy, and Greece is expected to be a major topic on the docket.

In December, Greece's credit rating was downgraded. S&P's move came after health care companies complained that the country was behind on payments related to its public health system.

Investors across the globe have been trying to digest what impact such a crisis would have on the nascent signs of recovery, and ripple-effect fears have sent worldwide markets lower.

The WSJ article said Germany's finance minister, Wolfgang Schaeuble, has discussed the aid idea in with European Central Bank President Jean-Claude Trichet.

But earlier Tuesday, Reuters reported that German government spokesman Ulrich Wilhelm called reports that a decision was already in effect "unfounded."

A bailout of Greece would mark the first time any EU country rescued a euro zone member.

The U.S. stock market was cheered by the reports of possible Greek aid, as the blue-chip Dow index (INDU) added almost 2% with less than 2 hours left in the session. The euro also rose in late trading. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.94%3.88%
15 yr fixed3.02%3.05%
5/1 ARM3.48%3.50%
30 yr refi4.01%3.93%
15 yr refi3.10%3.14%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,214.42 -10.15 -0.06%
Nasdaq 4,987.89 20.75 0.42%
S&P 500 2,110.74 -3.12 -0.15%
Treasuries 2.02 0.05 2.39%
Data as of 6:53am ET
Company Price Change % Change
Bank of America Corp... 16.04 0.00 0.00%
Apple Inc 130.42 1.62 1.26%
Chesapeake Energy Co... 17.20 -0.78 -4.34%
General Electric Co 25.89 0.00 0.00%
Hewlett-Packard Co 34.01 0.00 0.00%
Data as of Feb 26
Sponsors

Sections

The government of Prime Minister Narendra Modi is set to reveal its second budget, an event so highly anticipated that TV news channels have doubled their advertising rates around Saturday's presentation. More

The new FCC net neutrality rules are here. Now Comcast is threatening lawsuits and warning it'll stop investing in its own network. More

Shu-Ling Garver, once a homeless child in Shanghai, rose to one of the top engineers at Intel. Now her entrepreneurial mission is to get kids excited about engineering. More

Glassdoor recently published its annual list of the highest-rated companies for interns. More