Germany keeps the pressure on Greece - The Best from Greece

Posted on: 23/Nov/2011

No more aid before a written pledge says Merkel as Benelux states also issue warnings

German Chancellor Angela Merkel on Wednesday warned that the next slice of financial aid for Greece would not be granted unless the parties involved in the country's interim administration committed in writing to back a fresh package of austerity measures.

"The Greek question hasn't been cleared up yet, because the conditions are not in place for the payment of the next tranche,» Merkel said in a speech to the German Parliament on Wednesday.

"For that to happen... we need not only the signature of the Greek premier but also those of the parties that have agreed to support the government. Otherwise there can be no payout of the sixth tranche,» she added.

Many German newspapers carried similar warnings on Wednesday.

Antonis Samaras's New Democracy, a member of Greece's provisional coalition government led by technocrat economist Lucas Papademos, has so far refused to sign the pledge.

Failos Kranidiotis, a ND hardliner, earlier Wednesday attacked what he said were attempts to «humiliate» the conservative party. He rebuffed warnings of a Greek default as «paper threats."

There was pressure from elsewhere too. Luxembourg Finance Minister Luc Frieden on Wednesday said a «very strong commitment» is needed from Greece toward the austerity program.

"It is therefore extremely urgent that all political parties» in Greece commit to the budget-cutting program, Frieden said Wednesday in Luxembourg. «I hope that all the party leaders will at the latest by Monday write to all the ministers» of finance the letter «confirming the commitments that have been set."

Reports Tuesday said the EU has sent Athens an ultimatum, demanding the written guarantees before a Eurogroup summit next Tuesday.

"Greece also needs to realize that solidarity is not just a one-way route where we are giving money to another country,» Frieden said.

On Tuesday, Dutch Finance Minister Jan Kees de Jager warned his country would bar further aid unless Samaras changed his tune. «We want to see a signature from Mr Samaras… otherwise, as far as I am concerned, they will get no money. Absolutely not."

In a related development, the Bank of Greece warned Wednesday that the country needs «all-out effort» to avoid being driven out of the euro zone and set back to standards of living not seen in decades.

"What is at stake is whether the country is to remain within the euro area,» Greece's central bank said in its interim monetary policy report.

The central bank urged the interim government to restore confidence, fix the country's finances and kickstart growth.

"There are two national objectives which we must now pursue at all costs: first to generate primary surpluses... second, to speed up recovery,» the report said.

source: http://www.ekathimerini.com

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