Merkel of Germany said there was no need to make aid to Athens the main topic of a European Union summit meeting set for Thursday.
Greece should solve its own problems and does not yet need aid, Mrs. Merkel said during an interview on Deutschlandfunk radio Sunday.
Jesus! it would be better Greece be a neighbor of Brazil who sucks imports from Argentina.
Pay more for electricity of Paraguay, buys gas from Bolivia, help Venezuela constructing refineries invest in oil exploration in Colombia, not to mention pat Castro on his back…
Things look so bright there that UK wants a piece of the action drilling wild cat oil well in the Malvinas.
Rift in E.U. Widens Over Importance of Greek Aid
ATHENS — The rift over how to solve the Greek debt crisis widened Sunday between Berlin and the rest of Europe after Chancellor Angela Merkel of Germany said there was no need to make aid to Athens the main topic of a European Union summit meeting set for Thursday.
Greece should solve its own problems and does not yet need aid, Mrs. Merkel said during an interview on Deutschlandfunk radio Sunday. “Therefore, I don’t think it’s advisable to upset the markets by raising false expectations for the summit on Thursday,” she said. “If Greece doesn’t need any help, then I don’t think the issue should be in the foreground.”
With state elections in May, where a loss could cost her government its majority in the upper house of Parliament, the chancellor is under strong domestic pressure to avoid a bailout of Greece.
But her statements were out of sync with other European leaders ahead of the summit meeting. Prime Minister Silvio Berlusconi of Italy told reporters on Sunday that if “within the European Union there is no willingness to help a country which has the euro currency and is in the middle of a crisis, then the European Union has no reason to exist,” according to a report by Reuters.
Ms. Merkel also seemed to be rejecting a direct call from José Manuel Barroso, president of the European Commission, for a decision on a bailout mechanism at the summit meeting.
On Friday, Mr. Barroso said the commission was “ready to propose an instrument for coordinated assistance to Greece.” He added, “We cannot prolong any further the current situation.”
Germany has been stubbornly resisting pleas by the Greek prime minister, George A. Papandreou, for a detailed support plan that would reassure bond investors and lower the country’s high borrowing costs. Investors currently demand more than 6 percent interest on Greek debt, double the rate for German debt.
Speaking to members of his party Saturday, Mr. Papandreou indirectly criticized Germany for failing to support a concrete rescue package, a stance he said put the entire euro zone at risk.
“Many forces forget the political importance of the euro and overlook the essence of the political vision of the European project, which is a joint effort to develop our economy with a calm and stable climate,” Mr. Papandreou said. “This could end up destabilizing the E.U. and leading us in the opposite direction to that of those who inspired and created a united Europe and its common currency.”
Mrs. Merkel, however, stuck to her position Sunday that talk of aid to Greece was premature and would ultimately weaken the euro. Her comments reflect resentment among German taxpayers that while they had successfully tightened their belts, they might be called upon to rescue a country that had failed to keep its economy competitive and even altered documents to make it appear that its budget was within euro-zone guidelines.
“The best solution for the euro is if Greece solves its problems alone, naturally with political support from European heads of government,” Mrs. Merkel said.
The finance ministers from euro-zone countries agreed last week that, if aid were needed, member countries would coordinate to provide loans from the stronger nations, said Jean-Claude Juncker of Luxembourg, chairman of the group from the 16 member states.
But subsequent statements from the German government cast doubt on whether even this vague deal was real. European Union officials said there was widespread frustration at the conflicting signals coming from Berlin which, they believe, have been prompted by hostile public opinion in Germany.
Meanwhile, opposition to involvement in a potential rescue by the I.M.F. was in retreat, and it appeared likely that the organization would play a central role, even if a bailout were coordinated by the Union.
Support for that prospect came Sunday from the secretary general of the Organization for Economic Cooperation and Development, Angel Gurría, who told the Greek newspaper Kathimerini that he was confident Greece would emerge from its fiscal crisis as long as it received a support package. He said the I.M.F. should play a role.
“Greece is a member of the I.M.F. Why should it not seek help?,” he was quoted as saying. “As things stand, the I.M.F. is probably the best solution.”
“I believe the best approach is a combination of support, funding and guarantees, and I see the I.M.F. in this combination,” he continued. “You cannot emerge from this crisis on your own in spite of the measures you have taken.”
Flemming Larsen, former Europe director at the fund, also said that the most likely outcome would be combined European-I.M.F. support. “It’s now too dangerous to leave Greece without support,” Mr. Larsen said by telephone from France. “It’s a matter of urgency to stop the blame-game and get something in place.”
Mrs. Merkel, who has indicated that she is open to involvement by the fund, also played down an apparent split with the German finance minister, Wolfgang Schäuble, who has said that the Union needs its own fund to deal with fiscal emergencies among its members.
“I support him,” Mrs. Merkel said, while noting as Mr. Schäuble has said that the new institution would not be in place in time to help Greece. She repeated that euro-zone countries needed a way to sanction wayward members, including ejecting them from the monetary union “as an absolute last resort.”
Stephen Castle reported from London. Matthew Saltmarsh contributed reporting from Paris, and Niki Kitsantonis contributed reporting from Athens. |
