February 1, 2012
Germany is continuing its push for controls over Athens' budget, despite being rebuffed by Greece and other euro-zone countries at Monday's European summit.
Behind Chancellor Angela Merkel's quest for strict supervision of Greek spending lies growing frustration in Berlin that Greece has failed to meet its deficit-cutting targets or overhaul its economy, which were the conditions of its €110 billion ($145 billion) bailout in 2010.
With Europe set to decide in coming weeks on a second bailout package for Greece totaling over €130 billion, Germany is looking for a way to ensure that Greece meets its part of the bargain.
Ms. Merkel said late on Monday after the summit that strict outside controls are needed "if a country doesn't comply with requirements. That hasn't been the case with Portugal or Ireland," which also have euro-zone bailout programs, "but it is the case with Greece, and that has made such supervision necessary," she said.
Greek politicians and media have reacted angrily in recent days to Germany's pressure, viewing it as a humiliating curb on national sovereignty. Athens newspaper To Vima called it a demand for "unconditional surrender" of Greece's budget, while other commentators brought up Germany's bloody wartime occupation of Greece.
The tensions between Berlin and Athens are a symptom of a fading confidence around Europe that Greece's bailout program will work—but also of a failure by policy elites to come up with an alternative to ever-deeper austerity.
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