• Germany edition
 
Merkel to Cyprus: Keep reforms on track
Photo: DPA

Merkel to Cyprus: Keep reforms on track

Published: 11 Jan 2013 14:50 GMT+01:00
Updated: 11 Jan 2013 14:50 GMT+01:00

Merkel, who is attending an extraordinary summit of the centre-right European People's Party in the port city of Limassol, also said the reportedly €17 billion bailout package will not be "decided now."

"We are here today to study the situation of Cyprus and the situation in other European countries," Merkel, speaking in German, told reporters before attending the summit.

"I will say to Cyprus that the task will be such that on one side it must follow reforms and on the other side there has to be solidarity from other European countries."

Merkel did not clarify what reforms Cyprus must undertake, but the island has already pushed through tough austerity measures to meet the demands of eurozone creditors for more than one billion euros in cuts and savings.

Merkel also said that a package being hammered out in talks between Cyprus and the "troika" of the European Commission, the European Central Bank and the International Monetary Fund "are not at the stage to decide now."

Her remarks echoed those made on Wednesday, when she said there would be no exceptional terms for Cyprus and that talks are likely to continue for some time.

"There are no special conditions for Cyprus... We have generally accepted rules in Europe and we are a long way from finishing the negotiations," she said.

Meanwhile, Moody's downgraded Cyprus's government bond rating by three notches from B3 to Caa3 on Thursday, citing the anticipated increase in the government's debt burden.

The downgrade to middle-range junk bond status was driven by the further increase in the amount of government support Cypriot banks are likely to require. Cyprus's banks face rising delinquencies on loans to Greek and Cypriot customers.

Thursday's downgrade is the latest by a major ratings agency of debt-plagued Cyprus.

AFP/bk

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
Cash returned after bakery mix-up

Cash returned after bakery mix-up

Just how honest would you have to be to return €7,500 that you found in a box supposed to contain your favourite cheesecake? READ  

Expat's family battles for answers four years on
Matthew Fitzpatrick died in 2010 in Mannheim. Photo: Fitzpatrick family

Expat's family battles for answers four years on

In 2010 an Irish computer engineer was found dead in his apartment in Baden-Württemberg. Four years on, his family are still pressing the German justice system for answers. They feel badly let down by police who they say have refused to examine evidence of foul play. READ  

Tanker fills up gas station with wrong fuel
Photo: DPA

Tanker fills up gas station with wrong fuel

Around 160 car owners are stuck after a gas station's storage tanks were filled with the wrong fuel, causing an estimated €100,000 in damage. READ  

Lufthansa strike hits 1,500 flights
Photo: DPA

Lufthansa strike hits 1,500 flights

UPDATE: In the second day of their strike, Lufthansa pilots have, as promised, extended their industrial action to include long-haul international flights until the end of Tuesday. READ  

Merkel tells allies to pay Ukraine's gas debts
Chancellor Angela Merkel in Bratislava, Slovakia, on Monday. Photo: DPA

Merkel tells allies to pay Ukraine's gas debts

Chancellor Angela Merkel on Monday called on Ukraine's allies to help the war-scarred nation pay off its gas debts to Russia, amid concern over gas supplies this winter. READ  

Steinmeier wants epidemic task force
Frank-Walter Steinmeier speaks at the World Health Summit in Berlin. Photo: DPA

Steinmeier wants epidemic task force

At the World Health Summit in Berlin, the Ebola crisis took centre stage at talks meant to create plans for how to handle future outbreaks. READ  

Nazi-stolen painting put on display, sort of
The Wiesbaden Museum in Hesse. Photo: DPA

Nazi-stolen painting put on display, sort of

The Wiesbaden Museum was once a collection house for art stolen from Jewish owners by the Nazi. With one painting, they hope to right at least one wrong while bringing awareness to its ongoing restitution work. READ  

JobTalk Germany
'It's only an internship if you're learning'

'It's only an internship if you're learning'

How long should an intern work for without being paid? At least eight months, according to a ruling by a court in western Germany last week. JobTalk looks at the warning signs for abusive internships. READ  

Single parents, common law families on rise
Photo: DPA

Single parents, common law families on rise

The German family structure is changing, with nearly a third of every family no longer living in the "classic model" and big differences in what family looks like in the former East and West, statistics agency Destatis announced on Monday. READ  

Four arrested in raids against Isis
Photo: DPA

Four arrested in raids against Isis

Police raided 15 homes across Germany over the weekend and arrested four suspected supporters of the Islamic State (Isis). They are alleged to have smuggled a teenager and thousands of winter military clothes to the terrorist group's frontlines. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Berlin
Robbers blow up Berlin bank
Photo: DPA
Culture
Can you top our history quiz leaderboard?
Photo: Facebook
Society
German motorcycle gang joins Isis fight
Photo: DPA
Politics
UKIP ‘seeks EU pact’ with German satirical party
Photo: DPA
Travel
This is the man who has stopped Germany's trains
Photo: Shutterstock
Business & Money
Expats: Should I stay or should I go?
Photo: DPA
Gallery
PHOTOS: World's biggest erotic fair opens in Berlin
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Photo: Shutterstock
Business & Money
Which expat foods do you miss the most?
Sponsored Article
International School on the Rhine: a legacy
Photo: DPA
Gallery
The ten richest people in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,464
jobs available
Toytown Germany
Germany's English-speaking crowd