FRANKFURT (MNI) – Germany will block further aid to Greece should
Athens fail to meet all conditions required by the bailout agreement,
the deputy head of Chancellor Angela Merkel’s conservative parliamentary
block, Michael Fuchs, told German daily Handelsblatt.
“Even if the glass is half-full, that is not enough for a new aid
package,” he said in an interview published Monday. “Germany cannot and
will not agree to that.”
A final report by European Union, International Monetary Fund and
European Central Bank on Greece’s progress is expected by mid-September.
Even if other Eurozone states are ready to release further funds,
Germany will block the transaction should it not be convinced that
Greece has met all requirements, Fuchs told the paper.
Fuchs reminded that Germany has a veto right on EFSF aid and that
“Germany will make use of that veto right” if not convinced Greece has
reached its targets.
Fuchs advised against the European Central Bank stepping in with
additional emergency loans. The ECB should not “open up detour
possibilities and make money available that the Greeks could not
otherwise get from the rescue funds EFSF or ESM,” he argued.
–Frankfurt newsroom +49 69 72 01 42; e-mail jtreeck@marketnews.com
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