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Merkel: Greek rescue good for Germany

The Local · 1 Dec 2012, 14:18

Published: 01 Dec 2012 14:18 GMT+01:00

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Helping Greece is "in Germany's interests because measures are always taken with all of the euro zone in mind for the benefit of all members, including Germany," she told the newspaper.

"Obviously, I feel the scepticism of a lot of fellow citizens and I also understand this in part, because Greece has often disappointed its partners in the past years. A lot of things that were promised by the Greek government were not delivered," she said.

But "I am finally seeing a determination in the Greek government to reorganise the country from top to bottom and to give it a modern structure. Germany will help with advice and actions," she added.

Merkel on Friday secured the vote from German lawmakers to release €43.7 billion in aid to debt-wracked Greece agreed after tortuous talks between eurozone finance ministers.

In all, 473 deputies were in favour, with 100 against and 11 abstentions.

Merkel said the economy was "50 percent psychology" and said it was important not to rehash doomsday scenarios but to support Greece's gradual economic recovery.

"I will continue to do what is best for Germany and Europe, which is limiting the financial consequences and never taking unmanageable risks," she said, adding she would work with "all (her) strength to stabilise and

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reinforce the euro."


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Your comments about this article

15:01 December 1, 2012 by smart2012
Poor Germany of having such a PM.. The things she is saying now are all correct, but she should have said them 2 years ago.. Now eu and German business falling, as we lost 2 years just for political propaganda.. And thanks that hollande, monti, draghi that has solved the situation so far
16:12 December 1, 2012 by Peepopaapo
@ smart2012: Yes, smart2012, we all know your opinions by heart and every time we see an article just like this we all know that you will be the very first or at least one of the first ones who comments on it.

Where did Holland, Monti and Draghi solve the situation so far? Have you recently heard about the current condition of the French economy or about the current figures of the youth employment in Italy?

They have solved nothing, but will only make it worse.
16:20 December 1, 2012 by US-TommyBoy
Watching the slow motion disaster in the Euro Zone is like dying from a thousand cuts.

Continual bailouts of the PIIGS is not in Germany's best interest. Depending on how Merkel is investing, I am sure it is in her best interest. Another round of free money to Greece is the same as continually giving an addict his drugs for free, hoping in ten years he will still be your friend and have kicked the habit.

When the Euro Zone quits loan financing these addict nations, they will default and drop the Euro Zone altogether.

Germany would be better off, in spite of what Merkel says, to drop out of the Eurozone and form a new alliance with Russia/Sweden, a countries rich in resources and as hard as it may sound, less corrupt than the PIIGS.

Of course I am not an economist, and I live in the heartland of the United States. But I do worry about great nations (such as England right now) falling into third world status.
16:31 December 1, 2012 by owlguard
I think Chancellor Merkel is carrying the weight of the World on her shoulders. I think she understand the world economic situation better than anyone who has posted here, including me. I pray that her health and strength hold up as the world abuses her and redicules her as she struggles to save Germany's economy from the collapse of the EU.
16:48 December 1, 2012 by smart2012
Some comments to the pro-Verkel guys:

1. Verkel / centre right parties have been driving European agenda since 5 years. We r in a disaster

2. Monti/hollande/draghi ate in charge since 6-12 months, they have already stabilized the situation

3. Germany cannot survive on its own, low internal demand cannot sustain business plus strong currency will kill export

4. Europe is in trouble as not competitive enough (same as USA), that is why policies of long term sustainable growth based on permanent jobs (not 400 euros jobs) and solidarity will be the only option.. And solidarity does not mean paying for others, it means buying for instance tomatoes from Greece instead of turkey or holland and going on vacation in Greece instead of turkey.
16:59 December 1, 2012 by Peepopaapo
@ smart2012: Once again: Where have they stabilized the situation? WHERE? Has the unemployment rate gone down in Portigal, Italy, Spain and Greece? Nope! Is the French economy doing better than before? Nope! They are doing worse and worse and this is also why Moody's has decided to lower the rating for the ESM.
17:10 December 1, 2012 by smart2012
Peappooo, situation for Euro currency is clearly better (euro up vs dollar), spreads of Spain and Italy are going down.

Keep in mind that monti/hollande/draghi have to cope with Verkel/buba saying always nein, but even with this they improved the euro currency stability.

I know, also in Germany unemployment is growing and companies cutting, this is thanks to austerity and nationalism policies used by Verkel and sarkozy in the last 5 years, without a real European agenda.

As said, get her out, with Verkel Germany is now isolated.

Hope u will not lose your job next year.
17:22 December 1, 2012 by Peepopaapo
Sorry, smart2012, but I don't consider a situation where the unemployment rate in the Eurozone is on an all time high (11,7%) as a "stable" situation.

Germany is not isolated at all - do you know how many Portugese, Italians, Spanish and Greeks are heading to Germany at the moment?

The problem are the PIGS which have lived way beyond their means and would like to continue their party with the money of Northern European tax payers - but sorry that won't work, instead they should rather build up their own industry and increase their own productivity.
17:24 December 1, 2012 by IchBinKönig
'I think Chancellor Merkel is carrying the weight of the World on her shoulders.'

As one would when you stake your countries well being for the prolonging of bad political and fiscal policy. But still Politicians stubbornly cling to their Power Hunger. Unelected officials want to control all of Europe. This is being done for nothing more than the Political Greed of the Political Class. So that the Paymasters can control Europe with their 'Integration'.

Who ever describes Merkel's policy as 'Center-right' is not serious. Center-right in the DDR, maybe. She is bringing Europe back in time to a fight over Nationalism and Sovereignty. Keep it classy, Euros.
17:28 December 1, 2012 by raandy
smart2012 Euro up vs dollar is a downer for Germany, makes their exports more expensive and makes dollar items cheaper.

The unemployment in the EU is 11.7%and rising it is 7.9 in the usa.

The usa will overtake Saudia Arabis in the next 10 years as the largest oil producer and be energy non dependent by 2030 according to the latest IEA predictions.

The EU will be plagued by in fighting and debt problems well into the next decade.
18:22 December 1, 2012 by Englishted
Well she would say that wouldn't she .

Just cause she said it doesn't make it true.
19:06 December 1, 2012 by smart2012
Again people compare apples to pears. Euro currency stability is clearly improved. One year ago we were hearing one day after the other that euro will break up, with spreads flying. Today, thx to monti, hollande and draghi this is not the case anymore, and euro went back to 1.28 dollar and spreads r decreasing.

Second, about unemployment, I know Europe has problems (as USA), and Germany has problems too (and unemployment worsened thx to Verkel austerity). This was the political mistake of the centre rights parties (Verkel and sarkozy specifically). They were hiding the issue saying the problem was Greece, which is not the case.

All Europe is in trouble, and i trust more centre left getting in power than centre right parties that has driven the agenda since 5-10 years bringing us where we r now.
19:33 December 1, 2012 by Kennneth Ingle
I remember Merkel saying the Euro would be good for all of us! Judging by the loss in purchase-power pf my income, she must have meant good for the banks and politicians. We older people have lost all the way down the line and the forecast for the future, does not give much hope for those who come after us.
23:52 December 1, 2012 by jmclewis
@ smart2012 You statements lack any foundation in logic. All of these countries needing help have received money from many places there debt has not went down 1 Euro the money owed has increased from what they owed two years ago. The fact that these countries have not crashed in to financial anarchy leading to a revolution you state give as sign of stability. I am feeling I need more money every month for the next 5 years I do not know when or if I will ever repay you anything but a small percent of interest. This should make you happy because I am stable in my life with my Home, utilities, taxes, food, Car, TV and Internet..... So what is your pay pal so we can start this with out a moments delay.
00:59 December 2, 2012 by smart2012
Jmclewish, if 2 years ago one country had a problem (Greece), two years later 27 eu countries have a problem, plus USA too (fiscal cliff)..

Second how can Greece pay back money when they pay 10% interest rate? Only possibility is to cut their debt, but Germany do not want it as German banks and companies are majorly exposed in Greece..

Stop reading BILD
00:59 December 2, 2012 by IchBinKönig
Look at her,

Her ME Policy? How's Egypt looking, scrappy?

Her financial Policy? Bail out the Banksters. Where's George Soros?

Her domestic policy? Are the lights on yet?

I don't see how this is going to end without a war.

the 2 Biggest issues facing our time. Energy, ME policy and most of all the Economy.

I don't see how she can recover from such a record by election day. But I've seen someone win with an identical record.
01:30 December 2, 2012 by Steve1949
Obviously, I feel the skepticism of a lot of fellow citizens and I also understand this.

Gee. I wonder why. Another . Another 43.7 billion out the window.

If all these countries getting bailout were private citizens the Germans would have the gerichtsvollzieher standing at their front doors.
09:07 December 2, 2012 by Berlin fuer alles
'Rescuing Greece from economic collapse is in Germany's best interests, Chancellor Angela Merkel told Sunday's edition of the Bild tabloid, after German lawmakers approved billions of euros in international aid for Athens.'

Of course it is good for Germany. Always has been. So why didn't Dr. Merkyl and Mr. Hyde admit that years ago. As any loan shark will tell you. It is in their best interest to lend at exhorbitant rates and keep your victim alive in order to keep bleeding them.
10:29 December 2, 2012 by likosmokeses

''situation for Euro currency is clearly better (euro up vs dollar)''

So, why greeks moaning?

''thanks that hollande, monti, draghi that has solved the situation so far ''

These are center-left?

''Second how can Greece pay back money when they pay 10% interest rate''

Highest rate in eurobailout was 6%. Now we talking about reducing it to 0%.

''that is why policies of long term sustainable growth based on permanent jobs (not 400 euros jobs) and solidarity will be the only option''

You mean public sector jobs?

''Stop reading BILD ''

Stop reading rizospastis.
11:06 December 2, 2012 by raandy
One of the best things that could happen to the Euro Zone would be a massive euro devaluation.It would instantly make exports more competitive This would not only help Greece out of its misery but all members of the zone , from Spain, to ireland. This would potentially trigger a boom in Germany that could lift the entire continent.
11:27 December 2, 2012 by Berlin fuer alles
Yes raandy. But Spain, Greece, Portugal, Ireland and the rest of the Eurozone could have a devaluation simply by withdrawing from the Euro. That would be even easier for them.
13:17 December 2, 2012 by raandy
I hink that would be the beginning of the end for the euro,The banking system across the zone would collapse.It would be a financial Armageddon.

All of the weak euro zone countries are waking up to the fact that they are not Germany and can not compete against Germany.

But.. your comment has merit, by remaining in the currency union with Germany only delays the inevitable, a slow motion death spiral of economic collapse they are in fact making the economic pain of their populations far worse as a consequence of dragging out this economic collapse over many years rather than months as would have been the case had they had their own currencies and money printing presses.

Take the UK for example they have used smoke and mirrors to hide their own situation, which is far worse than they are letting on.

I am sure Germany has a plan for its own exit should Greece exit which would be followed by the weaker economies.
13:46 December 2, 2012 by smart2012

1. Greeks are not against euro, Greeks are against Verkel

2. Hollande and monti yes (more than Verkel, sarkozy and berlusconi or?)

3. Still spread of Greece is around 1000, so do a quick calculation. And 0% proposal was refused... By Verkel

4. R u kidding? 400 euros or temp agency work only in public sector. Do u smoke marihuana? How could BMW improve margins????

5. Read intelligent press, Bild is not and is dangerous for Germany and Europe.

Last, Hope in the coming years u will not lose your job. Enterprises are starting to cut in Europe. Just be aware
16:23 December 2, 2012 by likosmokeses

1. Also germans are against greek politicians.

2. Hollande is lying about France economy to his own citizens ( liar from center-left ) and Monti cut pensions and fired public servants in Italy ( modern liberalism of center-left ).

3. Probaply markets know much more on greek economy than me. Even if we cut your debt still markets will have up your spreads. And proposal was refused for good reason: you want to be threatened in order to deliver appropriate reforms.

4.You entagled BMW with greek public sector. Maybe you smoke marihuana and think that everybody else do. USA is a federal state. Can you tell me if ''permanent jobs (not 400 euros jobs) and solidarity will be the only option'' applies there?

5.If Europe is in danger from Bild ( for god's sake...) then it's Europe's problem, not Bild's.
16:37 December 2, 2012 by smart2012
1. Yes, they hate them, but they were ok when they were signing contracts for Siemens, thyseenkrupp, Telekom, deutsche bank, commerzbank (company heavily exposed in Greece - that is why Germany is not agreeing to cut Greek debt)

2. U did not respond to me, u say something different. Answer is yes, they are centre left more than Verkel and sarkozy

3. BS, reason is as per my point 1 above. If I cut debt main financial issue go away

4. I am talking about Germany for 400 euro jobs, the way Germany has improved employment rate and productivity but increased poverty (not sustainable)

5. Reading Bild is a problem in Germany yes. Bild is for uneducated people, always showing naked women and next to it talking politics..
17:42 December 2, 2012 by likosmokeses

1. German people hate greek politicians. German politicians may love cause they have sold Greece to them.

2. You said that you prefer center-left parties than center-right. You don't understand both of them follow same policies.

3. Financial issue will go away BUT NOT economy's infrastructure. You think that investors will hunging out of greek door to lend you with desire. It's just wrong. Even wealthy greeks don't want to invest IN THEIR OWN COUNTRY. Why to be done by a foreigner?

4. And i'm talking about greek public sector. Do you have an opinion on this?

5. So, uneducated germans threaten Europe?

Eurobonds and banking unification are forms of central governing management.

Banksters have achieve to persuate greeks that they relief will become only if Europe take up their debt. What they don't tell is after debt cut will follow democratic governing allegiance ( direct to Brussels) and greek politicians will be just employees of unelected bureaucrats ( maybe they are already... how knows).

Educated greeks have been manipulated by greek media to accuse Bild rather than greek elit for selling up their own country.

I feel sorry for them.
18:29 December 2, 2012 by smart2012
We r all being fooled by bankers and politician agree :)

But I still believe centre left is better, at least we should try ;)

Third, no one say Greece has a good system, it has to be changed (public and private too), however Greece is so small that no one was caring about them in the past and no one was interested in Greek money, only Germany as high german companies exposure in greece (companies listed above). If the Greek debt would have been cut 2 years ago, Europe would have saved billions.. Greece is only the escape goat
19:06 December 2, 2012 by likosmokeses
''Greece is only the escape goat''

That's right but for different reason from what you think.

Even if greek debt was cutted 2 years ago, story would have gone same way for Ireland, Portugal, Spain e.t.c. for the above reason ( central european governance ).

Now under fear and pressure of poverty, europeans want national rights to be granted to Brussels ( European Commision) and Frankfurt (ECB).

I remember all story back to 2005 when referendums for european constitution was held in France and Holland, Cirac saying '' i will not allow France to become california of Europe''. And now they beg...
20:29 December 2, 2012 by smart2012
Glad we r agreeing on conclusions :)

But just to remind Ireland and Portugal went already bust.. No one said anything, why? As not major exposure there of eu countries there.

Spain is quite a different animal. Remember 5 years ago Spain was booming and big investments went there (clearly banks mistake)..

Last, is France begging what?
23:16 December 2, 2012 by chris berlin
smart2012: I have observed you quite a while and you should not be taken seriously. If the crisis would have stabilized, how can you say that it is because of Hollande , Monti or anyone else. Maybe because of Merkel?... but neither nor. If sth. gets better or worse, then because of very very, very complex dynamics which neither you or I can really see through, even not Hollande or Merkel. Though I am not a conservative, I think Merkel did quite a good job doing compromises on all sides without doing ego-politics like sarkozy or berlusconi before.

NO MATTER what will happen with the EU in the future: if it will get worse, smart2012 will say it is the fault of Merkel, if it will get better,smart2012 will say it is because of Hollande, Monti etc.

Smart2012: Don't you see that it is YOU who builds walls and conflict by your egoic polemic blabla principially writing against Merke WHATEVER she does. You do not add anything to this conversation but one-sided populism. THIS othering without differentiating, seeing just with one eye, THIS is dangerous.
06:13 December 3, 2012 by PNWDev
@ chris berlin

Yes, smartguy only impresses himself and his two other @local accounts. His understanding of geopolitics and economics is so pathetic he should focus exclusively on social issues.
07:34 December 3, 2012 by likosmokeses
''Last, is France begging what?''

Frankfurt (ECB) to save them.

Probably they realise can't be anything else than... Europe's california.
12:26 December 3, 2012 by smart2012
Jus to remind a couple of pints:

France and Italy together are borrowing to EU moch more money than Germany.. they have never asked for money to EU.. BTW

as monti said a couple of weeks ago, net net save of Greece will cost more to italy than to germany.. as money borrowed to greece will go back to companies which have majorly invested in Greece ie German companies and German banks. This is the reason why Greece bacame so important for Germany.... This is the only country where everyday you read articles about Greece...

Merkel went even in France prio´r to election to support sarkozy...

As I said long before, Verkel is a puppet of banks, no carisma, bad coalition (Rosler), even criticized by Kohl r for poor strategical agenda and poor courage (Kohl was her sponson in early days).

and yes, euro started to stabilize since Monti, Hollande and Draghi, which used some courage and some long term agendas..

cannot defende her, sorry, she has enabled populism and nationalism to come back
13:39 December 3, 2012 by TWilliams
Well, US-Tommyboy, Britain is not in such a bad state as the US in some ways. :(

In reality it is only a matter of time before practically everything comes tumbling down, like the house of cards it all is. Politicians just prolong the agony. Truth of the matter is never ending growth is not sustainable. We are entering very similar to that of the 20s and 30s, and sadly we will see similar reactions with increased civil unrest and other factors.
15:36 December 3, 2012 by owlguard
I find it interesting that everything I said came true and no one noticed it. I said Merkel was carrying the weight of the world on her shoulders. That means more than just Germany and why should she, because she believes in a moral standard that does not change just because her circumstances change.

I said she would be ridiculed by the very people she is trying to help. Have we not seen enough of that here?

She is Dagny Taggart trying to hold things togather while moochers steal from her and liberals tell lies about her and the ignorant demand an appology from her. She is not perfect but she is better than all her detracters. I pray for her and you moochers better pray for her also, because if Germany becomes a looter state the EU will colapse and we will all be learning how to cook over an open campfire.

So go ahead and make fun of me, call me names. I know who you are and what modivates you. I have seen the end of your story line and no amount of yellig and protesting can change that. Go ahead and have your liberal spring and when there is no food to eat and no save place to sleep then you will reaped what you have sown.
20:49 December 3, 2012 by chris berlin
smart2012: say it again and again and again and again and again...... and no one listens.... but I know you do it for your pleasure.

merkel has a hard job and neither monti nor hollande are self-less... and you always picutre merkel and the rest of the EU. It is not like that! However, I know you are not interested in discussing. Blaming merkel, this is your agenda, no matter what she says, does, not says, not does...... you will always turn the picture that you do not have to give up your simple agenda.
21:48 December 3, 2012 by Clarissa Smith
@smart: Your stuff is worth printing, you're my hero here -- kinda my favorite liberal of the day and you make my day!

@chris in berlin: Of course people listen. Berlin is not Tennessee. Actually it's the right time to start blaming Merkel, because Europe must go to the left. Be more ecological, more anti-corporate greed, more pro worker rights. Your "blaming Merkel" complaint pretty much sounds like those Republican "blaming Bush" complaints. See, Merkel already shares Kohl's Glued to Chair Syndrome. She should really-really go next year.
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