EU's Rehn warns against 'devastating' Greek default

(STRASBOURG) - European Union Economic Affairs Commissioner Olli Rehn voiced hope Tuesday that Greece will secure a second bailout soon, warning that a disorderly default would devastate Greeks and harm Europe.

Rehn said it was "essential" for eurozone ministers to meet on Wednesday in order to finalise a new 130-billion-euro ($171 billion) rescue, plus a write down of debt held by the private sector that aims to slash Greece's debt burden by 100 billion euros.

"I expect that we should soon be able to decide on a new second programme for Greece," Rehn told a news conference at the European Parliament in Strasbourg, France.

Greek politicians are under pressure from eurozone partners to demonstrate their commitment to budget cuts and economic reforms at Wednesday's talks in Brussels in order to secure the new bailout.

The Greek parliament voted for a new round of cuts on Sunday but the eurozone wants Athens to find another 325 million euros in savings and political leaders to sign up to austerity pledges lasting beyond April elections.

"I can understand the pain and turmoil in Greece, but at the same time this is the framework that has been decided by the euro area member states together with the IMF, and we work on the basis of this framework," Rehn said.

"It is really in the interest of everybody now in Greece and in Europe to make this work and avoid a disorderly default of Greece, which would have devastating consequences especially to the less well-off members of Greek society and negative ramifications to the European economy overall."