FRANKFURT (MNI) – German Chancellor Angela Merkel reiterated
Wednesday that Ireland will not see the same cut in interest rate
conditions as Greece has without engaging in further reforms, a clear
reference to Ireland’s controversial corporate tax rate.
Merkel told a conference here that it was “a good step” to loosen
the loan conditions for Greece. In the case of Ireland, she said, “We
are still in discussions, but the principle of quid pro quo must be
upheld.”
The fiscally troubled Hellenic Republic’s European partners agreed
earlier this month not only to extend the maturity on loans made as part
of a bailout package from 3 to 7.5 years, but also to cut the interest
rate at which Greece must repay the loans by one percentage point.
Merkel also spoke critically of the bank stress tests conducted
last year, saying that they “did not contribute to credibility,” and
urged that the right lessons be taken in designing upcoming tests.
Merkel observed that the euro in the past was a successful currency
and assured that “it also functions today very well.”
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–Frankfurt bureau, +49-69-720142, frankfurt@marketnews.com
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