European Leaders Agree: Greece Needs A New Bailout Plan That Could Include Restructuring

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European leaders have concluded that Greece needs changes to its bailout program that could include the restructuring of its debt, according to Reuters sources.The decision, made by those in attendance at a secret Friday meeting exposed by Der Spiegel, is likely to include a reduction in Greece’s bailout interest rate and easing of austerity pressures on the country. Support for a debt restructuring in Greece also appears to be rising amongst European leaders. Such a move could hit banks throughout the eurozone, exposed to the country’s sovereign debt.

Further ratcheting up the pressure on the restructuring side, UK finance minister George Osbourne said Britain would not take part in another bailout because he didn’t think the first one worked at alleviating market pressure on the country.

Changes in the bailout will be yet again debated in a week’s time, at the Eurogroup meeting on May 16.

Refresher: Here’s who gets crushed in a Greek debt restructuring >