Germany backs recapitalisation of banks

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Germany backs recapitalisation of banks

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German Chancellor Angela Merkel on Wednesday said her government would recapitalise banks if required, but stressed that Europe must agree uniform criteria for doing so.

She was speaking in Brussels after talks with Jose Manuel Barroso, the president of the European Commission.

“The German government – and that’s what the German Finance Minister has underlined during the past two days – is ready for such a recapitalisation of banks,” Merkel told reporters.

“But we need common criteria. I think it is urgent and that’s why it should be decided rapidly.”

The German leader also reiterated her view that Greece must keep the euro.

“I see it as a necessity that Greece stays in the euro zone and that Greece gets the chance to get back on track.”

Commission president Barroso said “more Europe” was the only answer to the debt crisis and the only way to secure jobs and growth.

He said the EU would lobby its fellow G20 members to support a global financial transaction tax when the group meets in Cannes, southern France next month.