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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (75119)	6/11/2011 2:08:58 PM
From: Haim R. Branisteanu	Respond to of 219660

Merkel: Euro Debt Crisis Could Endanger German Economic Upswing 11-Jun-2011 (Updates with more Merkel comment and details in the last seven paragraphs.) -- Merkel: euro-zone debt crisis could endanger German upswing -- Merkel: unstructured default in any country must be avoided -- Merkel: indebted countries need to make effort for structural reforms By Bernd Radowitz Of DOW JONES NEWSWIRES BERLIN (Dow Jones)--The euro-zone debt crisis could endanger Germany's economic upswing "if we don't act in the right way," Chancellor Angela Merkel warned in a weekly podcast Saturday, saying the uncontrolled default of any country must be averted. "But that's what we want to prevent," she said, adding that her country's economy this year likely will expand by more than 3%. Merkel spoke as her Finance Minister Wolfgang Schaeuble, against the wishes of the European Central Bank, is lobbying for a fresh Greek aid deal that would include a participation of private bondholders via a bond swap resulting in an extension by seven years of the maturity of Greek sovereign bonds. Without mentioning Greece directly, Merkel said "we simply mustn't permit the uncontrolled default of a country." She added that nothing should be done that could endanger the global recovery. Merkel compared the situation to the collapse of Lehman Brothers that led to a contraction of almost 5% in Germany's economy. The repetition of "such a thing absolutely needs to be avoided," Merkel warned. Highly indebted countries have to make an effort to achieve structural reforms, Merkel said. She added that Germany is profiting from the euro as 60% of its exports go to Europe. "Therefore it's right and good that we fight for the euro as a strong currency," Merkel said. If the competitiveness of countries in trouble can be increased and their debt reduced "we will have a chance to overcome this crisis," the German Chancellor said. Merkel also said that no one outside Germany needs to be concerned about the her government's decision to exit nuclear power by 2022. "Germany will always generate as much energy as it needs itself," she said, adding that the country will also feel responsible for the stability of the European electricity grid. -By Bernd Radowitz, Dow Jones Newswires