• 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
Germany has just ten Ebola beds
Photo: DPA

Germany has just ten Ebola beds

Doctors at high-level infectious disease clinics say that caring for patients with the Ebola virus is much more intensive than they first thought, meaning they can handle fewer cases at once. READ  

Refugee Crisis
Now Berlin turns to tents to house refugees
A refugee protests on the roof of the former Gerhart Hauptmann School in Berlin. Photo: DPA

Now Berlin turns to tents to house refugees

Berlin has turned to huge tents and shipping containers to shelter growing numbers of refugees. With winter approaching, city politicians have called on the federal government for help. READ  

Ludwigshafen explosion kills one, injures 11
An eyewitness captured the moment of the explosion on their phone. Photo: DPA

Ludwigshafen explosion kills one, injures 11

UPDATE: One person has died and at least 11 others are injured after a huge explosion in western Germany on Thursday. READ  

Clueless Merkel forgets the F-word
Merkel suffers from Wortfindungsstörung at the IT summit in Hamburg. Photo: DPA

Clueless Merkel forgets the F-word

Angela Merkel's government is often criticized for its lack of understanding of all things digital and an appearance by the chancellor in Hamburg, which was supposed to change those perceptions, has only made things worse. READ  

Greenpeace finds danger in kids clothes
Photo: DPA

Greenpeace finds danger in kids clothes

Research released on Thursday by environmental group Greenpeace showed that more than half of clothing sold by German discount brands contain chemicals known to be dangerous to health and the environment, with items from Aldi being the worst offenders. READ  

Woman sues for accidental pot raid
Photo: DPA

Woman sues for accidental pot raid

A Bavarian woman is suing police for unlawful search after a reported break-in at her home led authorities to discover 158 cannabis plants in her basement. READ  

Germany lags in permits for non-EU migrants
Photo: DPA

Germany lags in permits for non-EU migrants

Germany gave out fewer residency permits last year per head to non-EU citizens than any other major European economy. READ  

Hamburg volunteers test Ebola vaccine
Hamburg's UKE has helped lead the fight against Ebola. Photo: DPA

Hamburg volunteers test Ebola vaccine

Volunteers have rolled up their sleeves for the first phase of the human trial for an Ebola vaccine at the Hamburg-Eppendorf University Clinic (UKE), it was announced on Wednesday evening. READ  

US adds voice to chorus telling Germany to spend
Jacob Lew and Sigmar Gabriel. Photo: DPA

US adds voice to chorus telling Germany to spend

US Treasury Secretary Jacob Lew, in a meeting on Wednesday with German Economy Minister Sigmar Gabriel, called on Germany to boost public spending to stimulate stuttering eurozone growth, the Treasury said. READ  

Man leaps with son, 5, from third-floor window
Schönhauser Allee in Berlin. Photo: DPA

Man leaps with son, 5, from third-floor window

A father and his young son are in serious condition after police and firefighters were called to their home in northeast Berlin early on Wednesday morning. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Gallery
PHOTOS: Huge explosion rocks Ludwigshafen
Photo: DPA/Shutterstock
Gallery
Which high school cliche is your German city?
Photo: DPA
Gallery
Storm hits southern Germany
Sponsored Article
An international school unlike any other : School on the Rhine
Photo: Fitzpatrick family
Society
'We still don't know what happened to Matthew'
Photo: Mariana Schroeder
Munich
Special Report: Hope and chaos at Munich's refugee shelters
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/Shutterstock
Gallery
11 things Germans are afraid of...
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

3,523
jobs available
Toytown Germany
Germany's English-speaking crowd