Pranab, Stiglitz discuss Eurozone problems

Nobel prize winning economist Joseph Stiglitz today discussed the Eurozone debt crisis with Finance Minister Pranab Mukherjee.            

The sovereign debt problem in Greece and the referendum call by Greek Prime Minister on a proposed EU rescue package also figured in the talks, an official said.     

"Stiglitz and Mukherjee also talked about the research in economics and finance in India," he added.     

Expenditure Secretary Sumit Bose and Chief Economic Advisor Kaushik Basu were also present in the meeting.     

Several European nations, including Greece, Portugal and Spain, are facing financial problems and a sovereign default is expected to have a severe impact on the whole region.     

Earlier in the day, Mukherjee had hinted at financing for sorting out Eurozone crisis after a credible assessment of solvency problem is made. "Our assessment of the situation is let them (eurozone) make a credible assessment of solvency issue, try to sort out those problems and then after supplementary financing could be considered. Let us see what the leaders decide," he told reporters.            

Leaders of G-20, a grouping of rich and developing nations, will be meeting at Cannes in France for two days beginning tomorrow to work out a solution to the eurozone's sovereign debt problems.