June 10, 2011
European paymaster Germany stuck to its guns on Friday in demanding that private investors contribute to a second bailout for Greece despite a European Central Bank warning against triggering market turmoil.
Finance Minister Wolfgang Schaeuble urged parliament to back additional aid for the heavily indebted euro zone country but said private creditor participation in a new package was "unavoidable" and reiterated he favored a bond swap that would push out Greek debt maturities by seven years.
The Bundestag lower house approved a non-binding resolution supporting extra emergency loans to Greece, but only on the condition that bondholders be made to share the burden.
Germany received backing for its stance from the Dutch, whose Prime Minister Mark Rutte said he viewed Berlin's debt proposals favorably.
"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 in a speech to parliamentarians.
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