Germany insists all of EU must pay for Greece bailout

Guardian
June 15, 2011

The Cameron government's deep reluctance to commit UK taxpayers' money to preventing a European insolvency is being tested by German insistence that all of the EU has to come to the rescue of Greece.

With European governments embroiled in a fierce dispute over how to structure a second bailout of Greece to forestall the first sovereign default in the 17-country single currency zone, Britain is keen to remain on the sidelines, insisting that Greece is purely a eurozone problem.

But on Tuesday night in Brussels, German officials told a meeting of EU finance ministers that all 27 EU countries had to contribute to the proposed bailout, according to a senior European diplomat. The government is resisting fiercely, claiming French support for its position.

"We do not want to be part of any second European assistance package for Greece. And no such proposal has been made," a Treasury spokeswoman said last night.

More