• Germany's news in English
 
app_header_v3

Merkel, Obama: Greece deal 'critically important'

AFP · 29 Jun 2015, 09:13

Published: 29 Jun 2015 09:13 GMT+02:00

In a telephone call about the unfolding crisis, Obama and Merkel "agreed that it was critically important to make every effort to return to a path that will allow Greece to resume reforms and growth within the eurozone," the White House said.

Obama and Merkel said their teams of economic advisors were closely monitoring the rapidly changing situation, the statement said.

Months-long bailout talks between Athens and its creditors dramatically broke down Saturday over the economic reforms demanded by creditors in exchange for more cash needed to keep Greece afloat.

Greek Prime Minister Alexis Tsipras stunned Europe late Friday with a surprise call for a July 5 referendum on the latest cash-for-reforms package and advised voters against backing a deal that he said spelled further "humiliation."

The eurozone responded by refusing to extend the European Union's funding program beyond Tuesday, almost certainly meaning Greece is headed for a default.

And many fear a "no" vote in the referendum would send Greece out of the eurozone.

Ahead of the referendum, US Treasury Secretary Jacob Lew called on all parties to "continue to work to reach a solution, including a discussion of potential debt relief for Greece," a Treasury statement said Sunday.

Lew said it was "in the best interests of Greece, Europe and the global economy for Greece and its creditors to find a sustainable solution," adding Athens would need to adopt "difficult measures."

Story continues below…

He also highlighted "the importance of taking necessary steps to maintain financial stability in the run-up to the referendum," the statement said.

For now, the European Central Bank has pledged to maintain emergency liquidity assistance to Greece, offering Athens a bit of a lifeline.

Tsipras announced Sunday that the country's banks and stock market would be closed on Monday, and capital controls imposed, calling for calm.

For more news from Germany, join us on Facebook and Twitter.

Your comments about this article

Today's headlines
Six burning questions for British expats about Brexit
Photo: DPA.

Uncertainty has kicked in over Brexit and what it may mean for Brits living in Germany.

Merkel demands German vote on EU free trade deal
Photo: DPA

Angela Merkel said the German parliament should be consulted on the EU's free trade deal with Canada, setting her on a collision course with the European Commission.

Red-faced pensioner declares war on pre-recorded sexline
Photo: DPA

An 84-year-old from Bavaria has reported a sex hotline to police after it let down his expectations of late night lust - and then charged him through the nose.

Brexit vote
Brexit 'doesn't pose big risk' to German economy
Car manufacturing at Volkswagen. Photo: DPA

While the financial markets have been thrown into disarray by the Brexit vote, leading experts on the German labour market say the country is easily strong enough to cope.

Berlin colony says no to more 'non-Germans' in its gardens
One of the many small garden colonies in Germany. Photo: DPA.

A public Berlin garden colony has come under fire for denying two Turkish families allotment spaces, saying there are already too many 'non-Germans' using the allotments.

Germany experiences highest birth rate in 15 years
Photos: DPA

Germany is experiencing a mini baby boom - but a veritable "death boom" is more than balancing out the score sheet.

Monsanto still 'open' to deal with German chemical giant
An Indian Monsanto farmer seen at work in 'Sweet Corn' field at Monsanto Bangalore Centre. Photo: EPA.

Monsanto said on Wednesday it was still open to a potential merger with Bayer, or to another big deal, as it reported lower earnings due to a tough agricultural market.

Shock birthday party attack at campsite leaves one dead
A broken fence posts found at the campsite. Photo: DPA.

Violence erupted at a campsite birthday party in Lower Saxony leaving one dead, police reported on Wednesday.

Trabi totalled on Autobahn after skidding on snail slime
Photo: Paderborn police

A vintage East German "Trabi" car has come unstuck after its driver hit a snail trail on the Autobahn.

Munich 'to spend extra €2.2m' on Oktoberfest security
Oktoberfest in Munich, 2014. Photo: DPA.

After terror attacks in Paris, Brussels and most recently Istanbul, Munich could spend nearly €3 million more on security and other measures - but terrorism isn't the only concern: the biggest fear is overcrowding.

Sponsored Article
Avoid hidden fees when sending money overseas
National
How to get German citizenship (or just stay forever)
Sponsored Article
Why you should attend an international job fair
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
International
'Germany needs to make UK come to its senses'
Sponsored Article
Education abroad: How to find an international school
Features
Six odd things Germans do in the summer
Sponsored Article
Health insurance for expats in Germany: a quick guide
Travel
These 10 little-known German towns are a must see
Features
How two gay dads cut through German red tape to start a family
National
Five things to know about guns in Germany
Sponsored Article
US expats: Taxes are due June 15th
Culture
10 things you need to know before attending a German wedding
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Society
Only one country likes getting naked on the beach more than Germany
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Culture
8 German words that perfectly sum up your 20s
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
Features
6 reasons Germany's summer is unbeatable for thrill-seekers
National
The future belongs to these 10 German regions
7,943
jobs available
Toytown Germany
Germany's English-speaking crowd