FRANKFURT (MNI) – Greece’s reform pace has accelerated recently and
much of the path toward recovery is already behind it, German Chancellor
Angela Merkel said Tuesday during her first visit to Greece since the
outbreak of the sovereign debt crisis.

“I believe that recently the reform tempo has quickened,” Merkel
said in a press conference in Athens with Greek Prime Minister Antonis
Samaras.

Merkel also reaffirmed that “I want Greece to remain in the
Eurozone,” adding that she is “deeply convinced that this tough path
will pay off (for Greece) and Germany wants to be a good partner and
friend in this.”

Merkel said that “a large part of the way has truly been put
behind” Greece already, citing progress with deep cuts to Greece’s
primary deficit, a halving of its trade deficit and unit labor costs
down about 11% since 2009.

While fiscal and structural reforms remain key, Merkel said that
“growth impulses” were also necessary and affirmed that Germany would do
what it can to support Greece’s access to a variety of EU investment
funds.

While Merkel offered a softer tone in Greece, she also reiterated
that the EU would wait until the Troika report on Greece before deciding
on the disbursement of Greece’s next E31.5 billion aid tranche.

Merkel acknowledged Greece was running out of time – Samaras has
said the government will be out of cash at the end of November – but she
also stressed the Troika report needed to be “thorough” and could not be
rushed.

Merkel also said Greece’s problems would clearly not end with the
disbursement of one more aid tranche: “The problems cannot be solved
with one beat of the drum, with one single initiative.”

Merkel did not offer anything concretely new for Greece during the
press conference, but rather said she was visiting to gain a better
understanding of the situation in the country. The German chancellor’s
visit has been met by major protests organized by the two major Greek
unions in Athens.

Merkel also acknowledged that uncertainty over Greece and other
periphery EMU members was harming growth in the entire Eurozone: “When
one is not doing well, we are all not doing well.”

Samaras for his part said he believed Merkel’s visit to Athens
would go a long way to ending Greece’s “isolation” in the Eurozone. He
said he is convinced that all EMU members have an interest in supporting
Greece.

Samaras also reaffirmed that Greece will do what it takes to remain
in the Eurozone. He said reform efforts continue and acknowledged there
were many steps remaining before Greece could restore its
competitiveness.

“I would not say that I am satisfied,” Samaras said.

— Frankfurt bureau: +49 69 720 142; email: ccermak@mni-news.com —

[TOPICS: M$G$$$,M$X$$$,MGX$$$,M$$CR$,M$Y$$$]