Chancellor Angela Merkel is expected to come under intense new pressure to ease some of the austerity measures imposed on countries like Ireland, after she signalled a softening of conditions on Greece.
Her foreign minister said negotiators might consider giving Greece more time to rein in its finances after that country gave the conservative New Democracy party a narrow majority in yesterday's elections. This may enable the party to form a coalition government -- possibly with the socialist Pasok party -- although it is likely to face strong opposition inside and outside parliament.
But the hint from Germany of even a slight softening of conditions is certain to give ammunition to other EU countries for an easing of the more draconian measures currently stifling growth. Ms Merkel's government said it would consider a possible extension of the timeframe for it to begin bringing in austerity measures.
The news of the possible softening of stance came as President François Hollande's Socialist government secured a clear majority in the final round of France's parliamentary elections yesterday, winning backing for his growth-led policies to tackle the eurozone crisis.
This is sure to heap even further pressure on Ms Merkel to consider more growth-orientated strategies than simply focusing on cuts.
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© Irish Independent
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