June 10, 2011
German Finance Minister Wolfgang Schaeuble urged parliament on Friday to back additional aid for Greece but said private creditor participation in a new package for the heavily indebted euro zone member was "unavoidable."
In a speech to the Bundestag two weeks before EU leaders are due to meet in Brussels to finalize a new rescue for Greece that officials say will total 120 billion euros, Schaeuble warned of disastrous consequences if aid was not forthcoming and the country was pushed into a disorderly default.
But in prodding skeptical lawmakers to support more assistance, he also laid out strict German conditions for a deal, saying Greece must make far-reaching reforms and that banks that hold the country's bonds should share the pain.
"If there are doubts about the ability of Greece to pay back its debt and we must win time with a new package, then the participation of the private sector in the solution is unavoidable," Schaeuble said.
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