Merkel Demands that Greece Take Quick Action

Spiegel
February 6, 2012

Patience with Greece is wearing thin in Europe. On Monday, Chancellor Merkel became just the latest EU leader to demand quick action from Athens. But talks on additional austerity measures there continue to go nowhere despite the looming threat of bankruptcy. Greek politicians, after all, must answer to their voters.

German Chancellor Angela Merkel is losing her patience. It is time, she said during a joint Monday press conference with French President Nicolas Sarkozy, for Athens to finally accept the tough austerity measures being demanded as a condition for a second, €130 billion bailout package for the ailing country. Should Greece reject the demands she hinted, insolvency and an exit from the euro zone could come quickly.

"We want Greece to stay in the euro zone," Merkel told reporters in Paris. But, she then added, "I want to make clear once again that there can beno deal if the troika proposals are not implemented. They are on the table, time is of the essence. Something needs to happen quickly."

"Our Greek friends must fulfil their responsibilities," Sakorzy added. "They have no choice."

In addition to heaping pressure on Greece, Merkel and Sarkozy on Monday called for the creation of a fund into which all Greek revenues would be paid. The idea is to ensure that the country makes interest payments on its massive debt. The fund would prioritize such payments above other state expenditures.

The sharp rhetoric on Greece's debt situation comes as leaders of the country's leading political parties remain deadlocked despite looming insolvency and a €14.5 billion bond repayment in mid-March. The troika -- made up of the European Commission, the International Monetary Fund and the European Central Bank -- has asked that, in exchange for the bailout, Athens impose yet more wage and pension reductions, public sector job cuts, a reduced minimum wage and tougher tax enforcement measures.

More