Helping indebted European countries get back on their feet is vital to Germany's economic health, Chancellor Angela Merkel said on Saturday in a message aimed at the general public. The comments come a day after Germany's parliament approved a non-binding resolution supporting extra emergency loans to fellow eurozone member Greece, but only on the condition that bondholders be made to share the bailout burden.
Asked in a weekly podcast if the eurozone debt crisis could threaten Germany's economic recovery, Merkel said: "If we don't take action in a positive way, that could happen, but it is exactly what we want to prevent."
"Therefore we should not simply allow the uncontrolled bankruptcy of a state - instead we must see how we can increase the competitiveness of countries in difficulty and give them the chance to work off the debt," she added. European Union leaders are due to finalise a new rescue package for Greece at a Brussels summit on June 23-24, which officials say will total 120 billion euros.
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