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Merkel: No Greek Aid Pact This Week
March 22 (Bloomberg) -- German Chancellor Angela Merkel told investors they shouldn't expect this week's European Union summit to agree on any aid package for Greece. EU leaders must not create illusions' for markets by building expectations for Greek aid, she said in an interview with Deutschlandfunk that aired yesterday. Her remarks came after Greek Prime Minister George Papandreou and European Commission President Jose Barroso said the EU should spell out its rescue plan at the March 25-26 summit in Brussels. Papandreou is urging EU allies to announce a package that will help him steer the country's borrowing costs lower and avoid the need for a bailout. Greece isn't insolvent and therefore the question about assistance isn't the one we need to be talking about now,' Merkel said in the interview. We always talk about the so- called markets that always respond to signals. I think it's important that we don't create illusions.' Merkel last week signaled Greece might have to turn to the International Monetary Fund for any emergency finance, a shift that put her at odds with French President Nicolas Sarkozy and other backers of a European solution to the Greek budget crisis. Papandreou, who says current borrowing costs are unsustainable, is looking for help as 20 billion euros of Greek debt mature over the next two months. Speaking to members of his governing Pasok party in Thessaloniki on March 20, he said the EU should place the gun on the table, so that the speculators can leave us at peace.' Posted by: Steve White 2010-03-22 |
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