Merkel dismisses speculation on third Greek bailout

German chancellor Angela Merkel i on Wednesday (4 March) scotched talk of a third bailout package for Greece and said that an EU-US trade deal can still be completed this year if there is enough political will.

Speaking after a visit to the European Commission in Brussels, Merkel said "we are currently doing all we can so that the second aid programme to Greece can be successfully brought to an end."

The work now is about "putting the agreed reforms into place" she added noting that this would be "assessed" by the Troika - a term for the trio of international lenders that Greece has tried to eradicate from official use due to its austerity-linked connotions for Greeks.

"I think we will have plenty to be going on with," said Merkel.

Standing alongside her, commission president Jean-Claude Juncker i agreed it was "too early" to speculate about a third pacakage for Greece.

His words came although he himself, along with euro commissioner Valdis Drombrovskis and Spanish economy minister Luis De Guindos, have in recent days indicated a new package is almost inevitable.

Merkel also spoke out strongly in favour of completing the EU-US trade deal - known as TTIP - this year. She said the commission, which is struggling to bring across a positive message about the deal amid fears about a lowering of EU health and consumer standards, could only do its job successfully if supported by member states.

"I welcome very much that commissioner Malmstrom [in charge of trade] has brought a high level of transparency into these negotiations. I think that helps to counter certain prejudices," she added.

On the particularly thorny issue of investor protection clauses - a focal point for campaigners against TTIP - the chancellor noted that Germany had in the past also "benefitted" from such clauses, which allow companies to take legal action against governments if their decisions risk undermining their investments.

Merkel said a "balance" had to be found on issue but added that "if there is a will to finalise such a (trade) agreement, then a way will be found. I am completely convinced of that."

Juncker, referring to the potential trade deal, said "it is not the role of the European Commission to sell out European values".

Asked about the recent decision to give France an extra two years to bring its budget deficit within EU rules - a decision which was strongly criticised by some German centre-right politicians - Merkel gave a tightrope-balancing response.

She had "taken note" of the commission's decision and also seen that a "very intensive reform process" is taking place in the country. She said that Germany wants to support Paris in its reforms in that "we have joint awareness" that jobs are created in competitive economies.

Merkel's visit to the European Commission was the first since it took office in November last year, and she went to some length to underline how strong her friendship with Juncker was, amid reports the two do not see eye-to-eye.

The chancellor also stressed the importance of working with both the European commission and the European parliament, with the major issues of the day - Greece and Russia, concerning respectively money and foreign policy - being dealt with predominantly in national capitals.