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24 August 2012

Reuters: Merkel and Hollande unite in tough message for Greece


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Angela Merkel and François Hollande presented a united front towards Greece, telling Athens it should not expect leeway on its bailout agreement unless it sticks to tough reform targets.


The German and French leaders met in Berlin to fine-tune their message to Prime Minister Antonis Samaras, who begins a charm offensive in Berlin and Paris this week in the hope of persuading Europe's big powers that Greece deserves patience.

Merkel stuck to her policy of deferring to a report due in September on Athens' progress by the "troika" of international lenders before discussing flexibility on the bailout terms, but said it was vital "that we all stay true to our commitments".

"But we will, and I will, encourage Greece to continue on its path to reform, which has demanded a lot of the Greek people", she told reporters before a dinner with Hollande set to be dominated by Greece. "We want, I want, Greece to be in the eurozone, it's a desire we have expressed since the start of the crisis. It's up to the Greeks to make the effort that is essential for that goal to be met", said France's Socialist president, standing alongside Merkel.

The Franco-German axis has been strained by Hollande's calls for more measures to stimulate growth, a rebuff to Merkel's strict agenda of austerity. Some German officials say the relationship with Hollande is off to a rocky start.

As Merkel prepares to campaign for a third term in 2013, in a country where the media is taking an increasingly tough line with Greece, she cannot cede too much to Samaras - or to the French Socialist government, which is allied with her main domestic opponents, the Social Democrats.

With German patience wearing thin after repeated requests for financial help from Greece, Spain, Portugal and Ireland, Merkel is under pressure to defend taxpayers' interests while also upholding the stability of the currency.

Full article



© Reuters


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