Greek Government asks for more time; Germans sceptical Aug 25th 2012, 19:32 http://www.spiegel.de/international/...-a-850963.html Quote: Athens has not been having an easy time coming up with the €11.5 billion in cost cutting measures over the next two years it has promised Europe. Indeed, Greek Prime Minister Antonis Samaras is reportedly set to request an additional two years to make those cuts during meetings later this week with German Chancellor Angela Merkel on Friday and French President François Hollande on Saturday. But according to information obtained by SPIEGEL, the financing gap his country faces could be even greater. During its recent fact-finding trip to Athens, the so-called troika -- made up of representatives from the European Central Bank, the European Commission and the International Monetary Fund -- found that Greece will have to come up with as much as €14 billion to meet the terms for international aid... ...The news of the potentially greater financing needs comes at a sensitive time for the country. Many in Europe, particularly in Germany, are losing their patience and there has been increased talk of the country leaving the common currency zone... ...Volker Kauder, who leads Merkel's conservatives in parliament, told SPIEGEL that Greece has little choice but to live up to its promises. "The Greeks must abide by what they've agreed to," he said in the interview (which will be posted on SPIEGEL International later on Monday). "There isn't any more wiggle room on this issue, neither in terms of the time frame nor the issue itself." He added: "I see little chance of a third aid package (finding support) in the coalition." Indeed, it is not just Merkel's conservatives who are becoming less willing to finance Greece indefinitely. Her junior coalition partner, the Free Democrats (FDP), have likewise become almost categoric in their refusal to consider additional aid measures. German Economy Minister Philipp Rösler, who heads the FDP and is also Merkel's vice chancellor, told SPIEGEL ONLINE over the weekend that "those who don't stick to the rules and the promises made cannot expect financial help." Recently, Rösler triggered a European-wide debate by saying: "For me, a Greek exit has long since lost its horrors." | Now Samaras and Merkel have met, but it doesn't look better for Greece. http://www.spiegel.de/international/...-a-851914.html Quote: Greek Prime Minister Antonis Samaras had been expected to make his case for more time to meet austerity targets in his meeting with German Chancellor Angela Merkel in Berlin on Friday. Samaras has said he wants an additional two years, until 2016, to trim €11.5 billion ($14.3 billion) from the Greek budget. But if Samaras had been hoping for quick concessions from Berlin, he didn't get them. Although Merkel reassured Samaras that she wanted Greece "to stay in the euro zone," she gave no sign of wanting to grant Athens more time to meet the terms of the bailout. Merkel did, however, say that Germany would not "make premature judgments" about Greece's reform efforts, but would await "reliable evidence," a reference to the report by the so-called troika -- made up of officials from the the European Commission, the European Central Bank and the International Monetary Fund -- which is expected in September or October. "We know that great sacrifices are being demanded from Greece's citizens," Merkel said, adding that Berlin supported the efforts of the new Greek government under Samaras... ...Merkel, who is facing national elections in Germany next year, is unlikely to budge on loosening the terms of the bailout deal. There is considerable opposition within her coalition government to giving Athens any more money, and the voices in Germany calling for Greece to leave the euro zone are getting louder. Ahead of the meeting, Volker Kauder, the head of the conservatives' parliamentary group, had taken a tough tone against Greece in comments to the German television station ZDF. "We can't make more money available," he said. He argued that the euro zone could withstand a Greek exit, saying he assumed "it would be no problem for the euro."... ..."Dutch Finance Minister Jan Kees de Jager finds Samaras' desire to have more time for reforms 'not a good idea.' One can only agree with that, especially before the troika's next report has been presented."... ..."Even if they wanted to, European leaders couldn't just wave through a third aid package for Greece because the International Monetary Fund does not want to keep throwing more money into the bottomless Greek pit…. Never before has the IMF given so much credit to a country with such little success." | | |