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Merkel hails eurozone rescue deal for Greece

The Local · 21 Jul 2011, 23:34

Published: 21 Jul 2011 23:34 GMT+02:00

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“For people in Germany today it means more security for our common currency and therefore a foundation for our economies and overall prosperity,” she said after hammering out a deal with eurozone leaders at a crisis summit in Brussels.

She said the euro was more than simply a currency used by 17 nations including Germany, but was rather an “expression of great unity” across Europe.

Merkel said she was pleased with the end result of the summit, which was called to shore up Greece and other eurozone members struggling with crippling debt.

“We reached an important milestone today,” she said, adding that the eurozone had demonstrated that it was “up to the challenges” poised by “difficult times.”

The EU leaders meeting in Brussels agreed to another aid package for Greece totalling €109 billion, plus measures for other countries battered by the financial markets.

According to the deal, European loans to Greece will also be extended by at least 15 years at a lower interest rate of around 3.5 percent. Private investors will also pitch in some €50 billion toward the bailout of the Mediterranean country.

“We did two things today,” Merkel said. “On one hand we agreed to the new programme. We have a voluntary contribution by private creditors and we also said at the same time that we need other instruments to avoid the threat of further contagion, in order to ensure the overall stability of the euro.”

She also tried to assuage the worries of German taxpayers over payments to more profligate eurozone countries: “What we spend today we will receive back many times over.”

The chancellor, who has faced repeated criticism for not showing more decisive leadership during Europe’s debt crisis, said the global financial markets were receiving “the right message at the right time.”

Germany wanted to help stabilize Greece and improve the country’s competitiveness, she said.

“We will stand at Greece’s side,” Merkel said.

Story continues below…

She also said it was crucial that the European Central Bank, which had warned about the impact of a Greek default, had supported the latest rescue package.

DPA/The Local/mry

The Local (news@thelocal.de)

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Your comments about this article

01:07 July 22, 2011 by lunchbreak
Well the greeks should certainly be happy. A eurozone bailout means the rest of us pay for them.
08:47 July 22, 2011 by agarwaen
HAPPY??????? Well NO the Greeks aren't happy! The new LOAN means another 35 billion euros on INTEREST paid to the north and the Banks (and the loan is guaranteed with mortgaged public property)! I'd say the "rest of you" win handsomely from this deal (again)! $^@#$ the euro!
11:15 July 22, 2011 by Englishted
¦quot;We reached an important milestone today,¦quot; she said, adding that the eurozone had demonstrated that it was ¦quot;up to the challenges¦quot; poised by ¦quot;difficult times.¦quot;

Some statements will come back to haunt you,and here is one.
12:39 July 22, 2011 by delvek
Stick a fork in it. Why are we forcing these economies to sustain, these are all temporary fixes. We are marching toward the greatest global economic collapse in world history. If would have allowed economic cycles to correct us instead of propping them up the world would be marching back to a recovery, who knows where this will end when USA, EU, UK, Latin America, Asia, China, Japan, Subsahara are all be propped up. When there is no more money to print and it eventually collapses, then we can reward ourselves with World War, history teaches us this, why should this time around be any different. Its a slippery slope.
15:03 July 22, 2011 by Swag2TZ
Screw Greece. Retirement at age 50...??? Are you kidding me...!! Drop kick their arsch out of the EU, and let them use the drachma again. WAKE UP CALL to all countries. Your responsibile for your own economy. Fix it yourself or the whole place goes up for sale. As for Merkel, send her home before she bankrupts Deutschland. (My second homeland).
15:37 July 22, 2011 by agarwaen
retirement at age 50?????? (What are you talking about???)

Germans retire at about the same age as Greeks (62 is the average retirement age) work way less than workers in Greece and Spain, but produce much more per hour of work:


15:45 July 22, 2011 by provita67
A Phony EU Crisis??

16:15 July 22, 2011 by tattooing18
15:03 July 22, 2011 by Swag2TZ

Screw Greece.

come and get it you big f@..... if you have the balls and you're not just words !!!!

have in mind, last time you try, you have kill from infants to old men, but .... is not that easy as your insane leader have told you.

and, by the way, we still waiting for our money, but .... 3 times in 100 years germany stop to pay all the money the have to pay in all countries !!!!! you don't read your and european economists, or you think we don't ?!?!?

so, stop playing the brave outside your door ...

you say, germany is your second homeland ...

which is the first ?!?!? ...... turkey or albania ?!?!


face that now .... the only thing you;re going to take from here, you and all your FRIENDS FROM YOUR GLORIOUS PAST ....

..... IS OUR "3" !!!!!! as you always take .... hehehehe !!!!!

17:09 July 22, 2011 by Englishted


Please be a little clearer I don't understand what you are trying to say.
09:21 July 24, 2011 by axlathi
And where exactly would Germany be today if US taxpayers had expressed the same attitude voiced in some of the comments above about helping out a country that not only had mismanaged its economy like Greece has, but had brought death and destruction to millions of people throughout Europe, ravaging and destroying their economies (as well as Germany's own) in the process.

Greece needs to sort itself out, and needs some help doing so, but Germans who get on their high horses and adopt a holier-than-thou attitude about providing some of that help have short memories.

A lot of the debt incurred by the Greeks was spend on German goods after all, from companies like Siemens that also played an active role in sustaining the corrupt habits of Greek politicians, as they used bribery to help land their multi-billion euro contracts.
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