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FDP defies Merkel with talk of Greek default

The Local · 14 Sep 2011, 16:32

Published: 14 Sep 2011 08:07 GMT+02:00
Updated: 14 Sep 2011 16:32 GMT+02:00

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Despite Chancellor Angela Merkel’s appeal for quiet and discretion on the subject, top members of the pro-business FDP have ignored her and are continuing to talk about an eventual Greek insolvency.

FDP Secretary General Christian Lindner told the Financial Times Deutschland on Wednesday that long-term clarity, needed by people in Germany and the markets as well as the Greeks, could not be achieved with a vow of silence.

The paper said that the subject had become a test for the centre-right coalition, with not only the FDP but the Christian Social Union, sister party to Merkel’s conservative Christian Democratic Union, also straying from her line of supporting Greece at pretty much any price.

In a marked departure from Germany's official line, Transport Minister Peter Ramsauer, a leading figure in the CSU, told the Die Zeit weekly on Wednesday it would "not be the end of the world" if debt-mired Greece were forced to exit the eurozone.

But Merkel on Tuesday said an uncontrolled Greek default must absolutely be avoided, after it was announced that she and French President Nicolas Sarkozy would speak on Wednesday with Greek premier Giorgos Papandreou to discuss the situation. She said the uncertainties on the market were big enough, and that, “therefore everyone should choose their words very carefully.”

But the FDP is refusing to stop talking about what party leader and Economics Minister Philipp Rösler said was a possible controlled default over the weekend.

Lindner told the FTD that his party did not want to talk up the chances of such a default, but said the appeal to stop discussing it was, “just an attempt to prevent an overdue debate about an undesirable but possible Greek default.”

He added, “Healing the symptoms will not bring stability to the markets.”

Story continues below…

He said it was right that not only his party but also the CSU was talking openly about not giving something for nothing. “If Greece cannot fulfil its contractual duties then there can be no further European emergency help,” he told Bayerische Rundfunk radio on Wednesday morning.

In an indication of how seriously the US government is taking the European crisis, it was announced on Tuesday that US Treasury Secretary Timothy Geithner would attend Friday’s informal meeting of his European Union counterparts. He is expected to pressure particularly Germany to increase the euro rescue fund, the FTD said.

The Local/DAPD/AFP/hc

The Local (news@thelocal.de)

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Your comments about this article

09:14 September 14, 2011 by Krim
The FDP is diving and will soon vanish. The leadership are trying to use Greece and the Euro crisis to gain popularity. The thing is that their politics is at the heart of the financial and economic crisis....The markt will regulate everything... No way...Ciao FDP
10:44 September 14, 2011 by Bushdiver
The FDP may be full of crap but the reality that even the current German Government doesn't want to accept is the possibility of a Greek default is very real. I for one would be glad if the whole EU collapsed. The Euro hasn't done much for me except cut my earnings in half and doubled the price of everything.
13:14 September 14, 2011 by cambiste
I attended the 1992 forex conference in Sydney.Hans Tietmeyer forcefully told the delegates that when the Euro came into being it would be an 'iron' currency .I think most people present had reservations about the lack of a common fiscal policy but assumed

the Bundesbank would be the major force and that he was correct.Since then the politicians have acted in their usual way and allowed entry to unsuitable members

(the Greek/Goldmans figures didn't fool anyone).I am not German and have no knowledge of the FDP policies but on this issue Lindner is speaking financial sense
13:18 September 14, 2011 by storymann
The FDP is using the reality that the Greeks will default politically.

It¦#39;s time for Germany and the ECB to cut their losses and instead work on saving the salvageable parts of the euro-zone financial system.The resignation of Juergen Stark, could signal a more accommodating ECB posture toward the debt laden peripheral countries.Such a stance will be easier to sustain at least politically if the problem of Greece is dealt with and isolated. And that can only happen through Greek default. Should this occur, the possibility of a new Treaty would become more viable.

I doubt that this will result in the end of the Euro. The Euro has established itself as an alternative to the dollar and given Europe's exports a currency that is much more stable and less problematic for their investors ( Germany being the export powerhouse of Europe has benefited the most from the single currency).
16:11 September 14, 2011 by derExDeutsche
If Merkel is serious about keeping these treasonous Politicians and Press in line. shutting them, and the rest of the Euro nonbelievers, up, for good; She should consider what Obama does in the US, and set up a website where you can report Lying politicians, reporters, neighbors, co-workers, friends, family members, etc. to the proper authorities. Only 'The Truth™' is worth repeating. This something new and exciting that Germany has never seen before!

Available now at ; http://twitter.com/#attackwatch and http://www.attackwatch.com/

(paid for by Obama for America)
08:22 September 15, 2011 by Englishted

I know you are right on wages and costs.

But if the euro goes then the "powers that be" will once again us it to double costs and slash wages.

Welcome to the working class, the human mushrooms fed on sh+t and kept in the dark.
16:36 September 15, 2011 by ChuChu
Og ja, that will be great!!ExDeutsche!! anothe Stazi situation, have you now totally gone bonkers! I always enjoy reading your comments, but PLEASE keep it logical. "This new and exiting things you are talking about is SICK...Stop It!
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