Saturday, August 25, 2012

German Leader Says Greece Must Remain in Euro Zone

BERLIN — Angela Merkel, the German chancellor, pledged Friday to support the new Greek government as it struggled to overhaul its economy, saying that the heavily indebted country must remain in the euro zone.


Ms. Merkel met in Berlin with the Greek prime minister, Antonis Samaras, for his first official visit abroad.

She expressed confidence that the government in Athens “will do what it takes to solve the problem in Greece,” and pledged to focus on healing the rift that has grown between the two countries.

“What I want is to bring the two realities that have emerged back together into one reality,” Ms. Merkel said.

“Now it’s the task of those who have political responsibility in Europe to bridge that gap. I want Greece to stay in the euro zone and that’s what I’m working for.”

The message was a clear signal to those Germans, including some members of her own government, who have argued that the easiest way to resolve Europe’s sovereign debt crisis is for Greece to leave the euro zone.

Volker Kauder, who leads Ms. Merkel’s party in Parliament, told the public broadcaster ZDF on Friday that a Greek exit “would not be a problem for the euro” because sufficient measures were in place to prevent contagion spreading to other weak economies in the euro zone.

Such calls have irritated Mr. Samaras, who vowed that his country would pay back its debt, but insisted that his country needed “breathing room” to revive its economy and meet targets agreed to in exchange for a €173 billion, or $217 billion, international bailout.

“The recovery of the economy is of critical importance if we are to achieve our goals,” Mr. Samaras said.

“What Greece needs is a chance at growth.” Mr. Samaras declined to specify how much more Greece might need to meet its targets, but said he was confident that a progress report from Greece’s international lenders, known as the troika — the European Commission, the European Central Bank and the International Monetary Fund — would show that Athens had “produced results” in its reform efforts.

That report is due next month and is expected to provide the basis for the next round of decision-making on Greece’s future during an E.U. summit meeting scheduled for Oct. 18-19.

With Spain waiting in the wings for help from Europe’s bailout funds and Italy facing an election in the spring, European leaders are emphasizing the importance of meeting strict conditions in exchange for aid.

“To win back confidence, we must fulfill expectations,” Ms. Merkel said after her meeting with Mr. Samaras, “and so I made clear in the talks that we of course expect from Greece that the commitments that were made be implemented, that deeds follow words.”

From Berlin, Mr. Samaras traveled to Paris, where he was to hold talks on Saturday with President François Hollande. The French leader met with Ms. Merkel on Thursday to plan a coordinated response to Mr. Samaras.

Mr. Samaras, an economist, said he also recognized that winning back trust would be necessary if his country was to move ahead. “We are a proud country. We don’t want to rely on borrowed money,” Mr. Samaras said. “We want to stand on our own two feet.”

nytimes.com

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