• Germany's news in English

Merkel: banks need cash

The Local · 6 Oct 2011, 17:54

Published: 06 Oct 2011 17:54 GMT+02:00

Facebook Twitter Google+ reddit

Merkel said banks should be recapitalised as quickly as possible if required, as concerns grow that the eurozone debt crisis is spilling over into a credit crunch.

"I think there would be a very clear need [to recapitalise] because this is money that is safely invested," Merkel said, adding, "I don't think we should hesitate."

There would be "far greater damage" if banks needed to be rescued by governments, she said.

"But the first step is for banks to recapitalise themselves," she stressed.

Later, she said the EU's bailout fund, the European Financial Stability Fund, could step in to provide more cash to banks but "only under very certain conditions ... and only if the euro as a whole were to be threatened."

"I would like to recall that the EFSF is a facility which serves to provide assistance at a point in time when a country would threaten the stability of the euro and the eurozone as a whole," the chancellor said.

Her comments came after European Commission President José Manuel Barroso suggested on Thursday a coordinated effort be made to recapitalise banks.

She had already made similar signals in Brussels Wednesday that helping the banks was "justified, if we have a joint approach" giving nervous financial markets an immediate boost after days of heavy losses.

The statement came after France and Belgium were forced to leap to the rescue of cross-border bank Dexia, the first European bank to be dragged down by the eurozone debt crisis - and which also had to be bailed out in 2008.

As the euro crisis continues unabated, Merkel was set to meet head of the International Monetary Fund, Christine Lagarde as well as European Central Bank President Jean-Claude Trichet and World Bank President Robert Zoellick to talk about reforming the currency system.

Story continues below…

Merkel’s vice chancellor, Economy Minister Philipp Rösler arrived in Greece on Thursday with a delegation of around 50 Germany business representatives. He called for the Greek government to remove hurdles to foreign investments more quickly, and held out the prospect of German industry helping the Greeks to expand their solar energy business.

But Rösler said there was little prospect of external investment if the Greeks themselves were not showing confidence in their country. “He who wants external investors, must of course be ready to invest domestically,” he told the ZDF television station just before leaving Germany.

AFP/DPA/The Local/hc

The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

09:15 October 7, 2011 by auniquecorn
Who the fk don´t need cash.
12:44 October 7, 2011 by wenddiver
Welcome to the real world, everybody could use more cash.
17:20 October 7, 2011 by jbaker
Who is going to pay the bill -The German People. The banks will get their infusion of money if you like it or not.

After printing more money to save the banks the value of Germany's money will be watered down.

Next comes one world government and one world bank. If you don't agree with this way of life, you will be taken and and diposed of. Read your history books - History always repeats itself until the majority want a change for equality and a better life for all.
18:36 October 7, 2011 by Englishted
Look at these lot they are just a "talking shop" until somebody gets hold of the credit agencies that are "playing" the markets for example downgrading Portugal

this morning .

Build a wall take all the speculators out to it and shoot them .
20:36 October 7, 2011 by raandy
Thanks Englishted that would work. but a hard sell
07:36 October 8, 2011 by Englishted

Hard sell is not the problem you just can't get skilled bricklayers anymore : -)
Today's headlines
After July attacks, govt drafts new video surveillance law
Photo: DPA

The Interior Ministry is drafting a law which will enable public spaces to be filmed for surveillance purposes as a reaction to deadly attacks in July, according to a newspaper report.

Eurowings union threatens cabin crew strike for Thursday
Photo: DPA.

A union representing cabin crews on Lufthansa's budget airline Eurowings has announced that strikes will start as of Thursday if ongoing contract negotiations continue to falter.

Merkel: murky internet giants distort perception of reality
Angela Merkel. Photo: DPA.

Chancellor Angela Merkel called on Tuesday for internet giants to make public their closely-guarded algorithms, claiming that they are not giving people diverse enough information.

Pegida leader 'paid court costs with group's money'
Pegida leader Lutz Bachmann. Photo: DPA.

The leader of the anti-Islam movement reportedly used money from Pegida's coffers to pay for two personal court cases, German media reported this week.

Anger as Berlin scraps Turkey concert on Armenia genocide
The Dresden Symphony Orchestra. Photo: DPA

Germany's foreign ministry Tuesday scrapped a planned symphony performance on the Armenian "genocide" in its Istanbul consulate, sparking accusations that it was caving in to Turkish pressure.

Obama to visit Berlin in last presidential trip to Germany
President Barack Obama and Chancellor Angela Merkel during a Berlin trip in 2013. Photo: DPA.

The White House announced on Tuesday that US President Barack Obama will be paying one last unexpected visit to the German capital - his last before he leaves office.

Hostility towards minorities 'widespread in Bavaria'
A village in southern Bavaria. Photo: DPA.

Hate and hostility towards groups deemed to be different are not just sentiments felt by fringe extremists, a new report on Bavaria shows.

Hated RB Leipzig emerge as shock challengers to Bayern
RB Leipzig. Photo: DPA

RB Leipzig's remarkable unbeaten start to the Bundesliga season has seen them suddenly emerge at the head of the pack chasing reigning champions and league leaders Bayern Munich.

Munich taxi driver in hospital after attack by British tourists
Photo: DPA

A taxi driver had to be hospitalized in Munich on Monday evening after three British tourists refused to pay their fare and then attacked him.

German police carry out nationwide anti-terror raids
Police outside a building in Jena during raids on Tuesday. Photo: DPA

Police forces in five German states carried out raids on Tuesday morning with the aim of tackling the financing of terror groups, police in Thuringia have reported.

Germany's 10 most weird and wonderful landmarks
Sponsored Article
Last chance to vote absentee in the US elections
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd