Merkel houdt boot af over mogelijke steun aan Griekenland (en)
EUOBSERVER / BRUSSELS - Europe's internal tussle over whether to provide financial aid to debt-ridden Greece continued over the weekend, with Germany's Angela Merkel i playing down the chances of a political decision being taken at a summit of EU i leaders in Brussels this week.
"I don't believe that Greece has need for money at the moment, and the Greek government will confirm that," Ms Merkel said on German radio on Sunday morning (21 March).
"That's why I advise against causing turbulence on the markets by raising false expectations about the European Council meeting this Thursday," she added.
Aware of strong domestic opposition to the potential bail-out, and with crucial regional elections looming in May, Ms Merkel insisted the Greek question was not even on the agenda of this week's meeting.
The results of a new FT/Harris poll, published on Sunday, highlighted the views of her constituents. They showed over 60 percent of Germans opposed their government helping Greece tackle its budget deficit, with 40 percent considering Europe's largest economy would be better off without the euro currency, weakened in recent months by eurozone's turmoil.
Repeating comments that have already won her a number of rebukes, Ms Merkel said the currency area's rules needed tougher sanctions, including the possibility of expelling serial offenders. Analysts again pointed to the intended domestic audience of her remarks.
The threat to remove a country from the euro club was "purely for domestic consumption. It's an absurd suggestion," Daniel Gros, director of the Centre for European Policy Studies in Brussels, told AFP.
Barroso
The German leader's comments on Greece stand in marked contrast to those made by European Commission President Jose Manuel Barroso i on Friday.
The Portuguese politician called on the EU leaders to reach an explicit agreement this week and warned that the lack of clarity was adding to market turmoil.
Greek Prime Minister George Papandreou met with Mr Barroso just days before in Brussels, as part of his ongoing campaign to drum up support for a EU statement of intention on the matter.
While not currently asking for money, Mr Papandreou insists a clear signal from EU leaders, indicating the availability of aid and how it would be transferred, would help allay market doubts and bring down his country's high borrowing costs.
The Greek centre-left leader has warned that failure to agree on a European solution could result in his government turning to the IMF i for financial assistance, a move strongly opposed by a number of euro area figures, but seemingly gaining in support in Berlin.
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