Merkel Says Second Greek Aid Program Hinges on Troika Accord
February 06, 2012, 4:59 PM ESTBy Alex Webb
Feb. 6 (Bloomberg) -- German Chancellor Angela Merkel said that a second Greek aid program hinges on Greece’s government adhering to the terms set down by its international creditors.
“We want a rational solution, meaning we need a second program, but that can only happen when, in the opinion of the troika, the long-term sustainability of Greece’s finances is secured,” Merkel said in a joint interview with French President Nicolas Sarkozy in Paris today broadcast on Germany’s ZDF television and France 2. For that to happen, “we need the cooperation of private creditors,” she said.
“There discussions have progressed a great deal,” and the troika representatives from the European Central Bank, the European Commission and the International Monetary Fund are now waiting for the Greek political leaders and Prime Minister Lucas Papademos “to present the reform program,” she said. “Both sides have to do their part.”
Sarkozy said that he and Merkel are working “hand-in- hand” to prevent a Greek default.
“Allowing a country with nine million people to go bankrupt isn’t an option,” Sarkozy said. At the same time, there can be “no community money” without reform.
“The greek government must do their homework and carry out their responsibilities,” Sarkozy said.
To contact the reporter on this story: Alex Webb in Frankfurt at awebb25@bloomberg.net
To contact the editor responsible for this story: Alan Crawford at acrawford6@bloomberg.net
