Merkel lowers expectations
By Erik Kirschbaum |
March 22, 2010, Monday
|
Print Edition
Print Edition
GREECE does not need any financial support and European Union leaders should not make the question of aid for the indebted country a focus of their summit this week in Brussels, Chancellor Angela Merkel said yesterday.
In an interview with Deutschlandfunk radio, Merkel said she feared causing turbulence in financial markets by raising "false expectations" about aid. She reiterated Greece has to sort out its own debt problems for the good of the euro single currency.
European Commission President Jose Manuel Barroso has urged EU member states to agree a standby aid package for Greece at a summit in Brussels on Thursday and Friday after Athens said it might have to turn to the International Monetary Fund for help.
"There's no looming insolvency," Merkel said yesterday. "I don't believe that Greece has any acute financial needs from the European community and that's what the Greek prime minister keeps telling me."
Barroso said last Friday the 16 countries that share the euro should be ready to make coordinated bilateral loans to Greece to help it reduce its budget deficit and refinance its debts, which are nearing 120 percent of gross domestic product.
In a move that appeared designed to shake EU member states into action and in particular to win German backing for a rescue package, Barroso said the situation could not be allowed to go on for much longer and action was needed rapidly.
But Merkel rejected that with unusually clear language.
"I don't see that Greece needs money at the moment and the Greek government has confirmed that. That's why I'd urge us not to stir up turbulence in the markets by raising false expectations for Thursday's council meeting," she said.
"I believe that, as long as Greece doesn't need help, this issue doesn't have to be at the forefront of our talks," Merkel added. "Aid will not be on the agenda at the meeting on Thursday because Greece says itself it doesn't need help right now."
EU leaders are expected to discuss the issue after Greece said it could not deliver promised deficit cuts if its borrowing costs stayed so high and that it may have to seek help from the IMF.
In an interview with Deutschlandfunk radio, Merkel said she feared causing turbulence in financial markets by raising "false expectations" about aid. She reiterated Greece has to sort out its own debt problems for the good of the euro single currency.
European Commission President Jose Manuel Barroso has urged EU member states to agree a standby aid package for Greece at a summit in Brussels on Thursday and Friday after Athens said it might have to turn to the International Monetary Fund for help.
"There's no looming insolvency," Merkel said yesterday. "I don't believe that Greece has any acute financial needs from the European community and that's what the Greek prime minister keeps telling me."
Barroso said last Friday the 16 countries that share the euro should be ready to make coordinated bilateral loans to Greece to help it reduce its budget deficit and refinance its debts, which are nearing 120 percent of gross domestic product.
In a move that appeared designed to shake EU member states into action and in particular to win German backing for a rescue package, Barroso said the situation could not be allowed to go on for much longer and action was needed rapidly.
But Merkel rejected that with unusually clear language.
"I don't see that Greece needs money at the moment and the Greek government has confirmed that. That's why I'd urge us not to stir up turbulence in the markets by raising false expectations for Thursday's council meeting," she said.
"I believe that, as long as Greece doesn't need help, this issue doesn't have to be at the forefront of our talks," Merkel added. "Aid will not be on the agenda at the meeting on Thursday because Greece says itself it doesn't need help right now."
EU leaders are expected to discuss the issue after Greece said it could not deliver promised deficit cuts if its borrowing costs stayed so high and that it may have to seek help from the IMF.
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