January 9, 2012
Germany and France have raised the pressure on Greece to a find a solution to its debt crisis, warning that the country will be denied a crucial €130bn (£107bn) bailout unless it can reach an agreement with its bondholders.
Speaking after a meeting with France's president, Nicolas Sarkozy, Angela Merkel said: "We must see progress on the voluntary restructuring of Greek debt."
The German chancellor added: "From our point of view, the second Greek aid package including this restructuring must be in place quickly. Otherwise it won't be possible to pay out the next tranche for Greece."
Under the terms of the second bailout, investors are being asked to write down 50% of the value of their holdings of Greek government bonds although there has been speculation that the size of this writedown may yet increase.
Sarkozy called the situation in the eurozone "very tense" after his first meeting with Merkel in 2012 and ahead of crucial meetings in Italy before the full EU summit on 30 January. "The situation is tense, perhaps more so than ever in the eurozone's history," he said.
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