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	<title>OTA-Berlin Constituency Blog &#187; Berlin Merkel government</title>
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		<title>Merkel &#8211; two steps forward &#8230;one step back- changes her stand on Greek Debt</title>
		<link>http://www.ota-berlin.de/blog/06/20/merkel-two-steps-forward-one-step-back-changes-her-stand-on-greek-debt/</link>
		<comments>http://www.ota-berlin.de/blog/06/20/merkel-two-steps-forward-one-step-back-changes-her-stand-on-greek-debt/#comments</comments>
		<pubDate>Mon, 20 Jun 2011 14:47:16 +0000</pubDate>
		<dc:creator>OTA-Berlin</dc:creator>
				<category><![CDATA[Berlin]]></category>
		<category><![CDATA[Economy Berlin]]></category>
		<category><![CDATA[Economy EU]]></category>
		<category><![CDATA[Economy Germany]]></category>
		<category><![CDATA[Politics Germany]]></category>
		<category><![CDATA[Berlin Merkel government]]></category>
		<category><![CDATA[berlin on greek debt]]></category>
		<category><![CDATA[decline in Greek visitors to Berlin in last year]]></category>
		<category><![CDATA[germany and greek debt]]></category>
		<category><![CDATA[greek debt as seen by berlin]]></category>
		<category><![CDATA[merkel - two steps forward on step back]]></category>

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		<guid isPermaLink="false">http://www.ota-berlin.de/blog/?p=10710</guid>
		<description><![CDATA[The German Chancellor Angela Merkel yesterday reiterated her firm view that "substantial" aid from private creditors is necessary to resolve Greek debt concerns. 
Greece is facing imminent default on its state loans owed and the question is whether or not to release the next instalment of circa 12 billion Euro which they need to pay their outstanding bills next month.
The IMF is in its turn demanding solid assurances that the Greek Government will finance itself over the next fiscal year before being paid out anew.
Many are painting Spain as the next possible basket-case economy - after Greece, Ireland and Portugal - which have been forced to seek emergency aid; however it seems now that even Belgium and Italy could seek some emergency aid.
The Luxembourg prime minister, Mr Jean-Claude Juncker, who also heads the  Euro-group of finance ministers,  has confirmed the urgency of the situation and warned the Greeks that they ‘are playing with fire’.
Merkel has for weeks called for a complete Greek debt restructuring by changing existing debt for new bonds with longer maturities. However the ECB/European Central Bank and some EU  states have opposed this saying that it would wreak havoc with banks financial markets  especially in Greece.
Nothing new here, we have heard this all before – however there seems to be new urgency in her recent comments and also willingness to compromise. She agreed Friday to a less-drastic restructuring plan for Greece, through which some banks and insurance companies and other private creditors can volunteer to roll over their Greek debt holdings. 
Merkel has said she now backing a new package similar to a deal agreed to on Romanian debt agreed in 2009, in which private banks agreed to buy new government bonds to replace older ones that matured.
Both Merkel and her competent Finance Minister Wolfgang Schaeuble have stressed that the private sector's voluntary role –  from both banks and insurance companies - should be quantifiable  
Both the European Union and the International Monetary Fund want to assemble a 2nd bailout package for Greece to equal  last year's 110 billion Euro loan.
Athens in return is being asked to introduce and implement stern austerity measures.  This basically means asking ordinary Greek citizens to pay for the mistakes and mismanagement of previous governments – and obviously this will be a hard sell and is already leading to widespread public protest on the streets.
The present Greek PM Papandreou announced a new government on Friday, trying to ward off the economic meltdown but it seems this could just be an exercise of ‘rearranging the chairs on the deck of the Titanic.’ 
And as these deck chairs are being rearranged – as seemingly being demanded by the both the EU and IMF -  17 Euro-group Finance Ministers will meet Sunday evening in Luxembourg for the first of a series of meetings this week,- meetings which could be of the utmost importance to the future of the Euro.


]]></description>
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					data-text="Merkel &#8211; two steps forward &#8230;one step back- changes her stand on Greek Debt" data-url="http://www.ota-berlin.de/blog/06/20/merkel-two-steps-forward-one-step-back-changes-her-stand-on-greek-debt/"></a> 
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<p>The German Chancellor Angela Merkel yesterday reiterated her firm view that &#8220;substantial&#8221; aid from private creditors is necessary to resolve Greek debt concerns.</p>
<p>Greece is facing imminent default on its state loans owed and the question is whether or not to release the next instalment of circa 12 billion Euro which they need to pay their outstanding bills next month.</p>
<p>The [...] <a href="http://www.ota-berlin.de/blog/06/20/merkel-two-steps-forward-one-step-back-changes-her-stand-on-greek-debt/" class="more-link">Continue Reading&#8230;</a></p>
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		<title>First 100 days of Merkel 2nd Berlin Coalition – Germany counts the costs</title>
		<link>http://www.ota-berlin.de/blog/02/05/first-100-days-of-merkel-2nd-berlin-coalition-%e2%80%93-germany-counts-the-costs/</link>
		<comments>http://www.ota-berlin.de/blog/02/05/first-100-days-of-merkel-2nd-berlin-coalition-%e2%80%93-germany-counts-the-costs/#comments</comments>
		<pubDate>Thu, 04 Feb 2010 23:41:39 +0000</pubDate>
		<dc:creator>OTA-Berlin</dc:creator>
				<category><![CDATA[Berlin]]></category>
		<category><![CDATA[Berlin Merkel government]]></category>

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		<description><![CDATA[First 100 days of Merkel 2nd Berlin Coalition  ]]></description>
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					data-text="First 100 days of Merkel 2nd Berlin Coalition – Germany counts the costs" data-url="http://www.ota-berlin.de/blog/02/05/first-100-days-of-merkel-2nd-berlin-coalition-%e2%80%93-germany-counts-the-costs/"></a> 
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		<div style="clear:both;"></div><a href="http://www.ota-berlin.de/blog/02/05/first-100-days-of-merkel-2nd-berlin-coalition-%e2%80%93-germany-counts-the-costs/"><img align="left" hspace="5" width="150" height="150" src="http://www.ota-berlin.de/blog/wp-content/nopicture.jpg" class="alignleft wp-post-image tfe" alt="" title="" /></a><p>Berlin   05-02-2010</p>
<p>The 2nd Merkel coalition government has been grappling with the banking crisis, domestic tax issues and the factious and unpopular military mission in Afghanistan for about the last 3 months and have very little positive results to show for it.</p>
<p>While some expectations may have been high when this governing coalition came to power 100 days ago – in fact it has [...] <a href="http://www.ota-berlin.de/blog/02/05/first-100-days-of-merkel-2nd-berlin-coalition-%e2%80%93-germany-counts-the-costs/" class="more-link">Continue Reading&#8230;</a></p>
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