German Chancellor Angela Merkel has made a statement on Greece’s appeal for financial aid from the International Monetary Fund and the EU’s euro zone, in a move to keep options open.
This follows Greek Prime Minister George Papandreou’s call for help to get out of a deep debt crisis.
Merkel said: “It’s important that Greece prove it will take the necessary steps to get back its economic and financial strength in the longer term. It won’t take just one year; the IMF usually agrees on three-year programs.”
In other words, Greece must be ready to sustain austerity measures.
Germany has proposed contributing more than 8 billion euros of a total 30 billion euro aid package for Greece, even though Merkel faces domestic opposition to a Greek rescue.
Ongoing talks on the conditions for giving loans to Greece involve of course the government in Athens, the IMF, the European Central Bank, the Commission and the other euro countries.