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Opposition ridicules Merkel's bailout deal

The Local · 18 Jun 2011, 14:40

Published: 18 Jun 2011 14:40 GMT+02:00

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"The idea of a voluntary contribution from the banks is ridiculous," said Carsten Schneider, financial spokesman for the Social Democratic Party, before adding that the decline of Gemany's influence in Europe was both breathtaking and frightening.

Sven Giegold, finance spokesman for the Green party in the European parliament, called the entire discussion around private contributions "absurd," and said that the financial sector was setting the political agenda in Europe.

"We're having huge problems even making binding agreements," Giegold said. "Politicians should stop making voluntary deals. Instead, we should be making rules and enforcing them."

Even the junior partner in Germany's governing coalition, the Free Democratic Party, was critical of Merkel's compromise with Sarkozy. FDP deputy leader Volker Wissing said the finance sector could not simply expect the tax-payer to solve all economic problems.

Merkel heads a group of top eurozone economies that had been pressing for private investors to contribute up to a third of the second rescue package by accepting later repayment on their Greek bonds.

But she appeared to back down after the talks with Sarkozy on Friday - amid warnings that Berlin's terms for the eurozone's fourth emergency bailout could trigger a potentially disastrous Greek debt default.

FDP finance politician Frank Schäffler told the Frankfurter Rundschau newspaper, "You do have to ask yourself why France gets its way in such important questions and not Germany, the biggest economy in Europe."

Story continues below…

Klaus-Peter Flosbach, finance spokesman for Merkel's Christian Democratic Union, defended the government. "The coalition agreed only to offer financial aid to Greece if there was a proportionate contribution from private creditors. We will stick to that," he said. "But private participation can only go so far – it shouldn't be large enough to cause a more serious crisis in the eurozone."

DAPD/The Local/bk

The Local (news@thelocal.de)

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Your comments about this article

15:00 June 18, 2011 by Englishted
Dear Bankers ,

Please could you help us out and bail out the Euro again .

Don't worry if it goes wrong the taxpayers will provide you with a safety net so you can carry on paying bonuses to yourselves even when you make a loss ,in fact just like last time and the time before.

Yours with love ,

Tweedle dee and tweedle dum
16:51 June 18, 2011 by cambiste
No wonder Sarkozy seems triumphant.The major French banks have dangerous exposure

to Greek debt (thats why the rating agencies are considering downgrading them) and those

picking up the bulk of the tab for the new bailout will be the German taxpayer.

Game,set and match to theFrench-Wimbledon joke!
17:14 June 18, 2011 by harcourt
cambiste: German banks are badly exposed, not as much as the French but still very badly exposed. - DEUCE
17:55 June 18, 2011 by derExDeutsche
Lieber Government,

Thank you, for creating an artificial housing bubble with foolish 'feel good' policy. Without ¦quot;The National Homeownership Strategy: Partners in the American Dream¦quot; . Banks, who previously had tried to MAKE money, would never have been able to lend to those with bad credit and no money down. Without the Govt. imposed erosion of lending practices, we could have never seen such an artificially high housing market. Your 'creative' measures to promote home ownership, of course, was always insured via Taxpayers in the form of Freddie Mac and Fannie Mae. Thank you for ensuring investors that all those bad mortgages were good. Without your crisis we would have never been able to in debt an entire continent, and receive payment from zee Germans.


The Greeks, the Irish, the Spanish, the Portuguese
18:16 June 18, 2011 by William Thirteen
conflating the US housing loan fiasco and the Greek debt scandal brings no clarity. Just because Goldman Sachs was involved in both swindles, doesn't mean they are related!
18:26 June 18, 2011 by ovalle3.14
Nice picture. Goes to show how German women feel about short, foreign men.
18:26 June 18, 2011 by derExDeutsche
no, no, totally unrelated ... rotflmfao !!!

Greece/EU may have already been on the road to failure, things were expedited by the financial crisis in the USA .
18:40 June 18, 2011 by MJMH
What do you think the new German Mark should be called. Deutsche Mark or Neue Deutsche Mark or would another name be better.
19:02 June 18, 2011 by Englishted
FDP = Forging Duplicity Plagiarists.

How about the Merkel Mark? then nobody would want to spend them,or save them.
01:41 June 19, 2011 by jmclewis
Angie, Sarkozy has not had a woman with some meat on her bones in awhile you are in for a treat, do not laugh when you see him.
06:59 June 19, 2011 by harcourt
#8 and #9 Why not go back to the Reichsmark. The good old days when Germany had some REAL influence over Europe !!
19:28 June 19, 2011 by Shh Kebab
So Angie and Sarkozy are really trying to protect their national banks. Another 100 billion to a nation that cannot pay off its current debts is throwing good money after bad. Lending money to people who cannot afford to pay it back was what initiated the current economic crisis in America. It will put the problem off for another year.

Better still just boot Greece out of the euro and let the banks "pay" with their useless Greek bonds.
22:01 June 19, 2011 by harcourt
I draw your attention to the bar graph at the end of this article http://www.bbc.co.uk/news/business-13828340 and you will see that the German Govt. is exposed to about 22bn euros whereas the French Govt. is exposed to only about 15bn euros in the Greek financial crisis. No wonder Merkel is desperate to get a solution and not let Greece default.
02:02 June 20, 2011 by wenddiver
What movie is the hugging midgets picture from?
19:12 June 20, 2011 by Jack Kerouac
"You do have to ask yourself why France gets its way in such important questions and not Germany, the biggest economy in Europe."

Yes, why is that? Because Sakorzy always hugs Merkel or touches her arm every time they meet? Germany has economic dominance in Europe - she should be acting like it. You can be a good partner AND a strong, unified force as well. I don't like all this backing down and comprimise. The situation is hopeless with the Greeks - but how much do we (Germans) stand to lose if they default? Would it really be the end of the world (the EU)?
19:17 June 20, 2011 by cambiste
harcourt-confused by the numbers you quote. the bbc tv news and bbc business site you mention appear to show the reverse of your figures.could this be a line fault ?-another wimbledon joke!
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