EU paymaster Merkel guarded on new aid for Greece

Reuters
May 10, 2011

German Chancellor Angela Merkel, Europe's reluctant paymaster, said on Tuesday she could only discuss further aid for Greece after EU and IMF officials report on implementation of its existing rescue plan.

Speaking to foreign correspondents in Berlin, Merkel did not rule out additional funding for Athens, or a possible further easing of terms on its 110 billion euro ($157 billion) bailout, and she voiced confidence that the German parliament would back a permanent bailout mechanism for the euro zone.

"I need to analyze the findings of the European Central Bank, European Commission and International Monetary Fund first and I can't comment before that," she said. "Anything else would not help Greece or Europe.

A source with direct knowledge of the joint inspection mission visiting Athens said EU and IMF officials had not yet concluded whether Greece had met targets required to receive the next tranche of aid under its existing aid deal.

He stressed the inspectors were not discussing a new bailout package with the Greek government, which has acknowledged it may not be able to return to capital markets next year as planned.

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