So, who is spinning here, Goldmen or Merkel or both?
Tuesday, March 23, 2010
So, Who Is spinning
The stage is set for a showdown between Angela Merkel (left) and Jose Manuel Barroso, the European commission president, after the German chancellor said a bailout for Greece should not be on the agenda of this week's EU summit in Brussels. Barroso had called for the eurozone countries to use the two-day meeting to agree to a co-ordinated package of loans that could be quickly put in place if the Greek government decided it needed help to reduce its ballooning budget deficit. He warned that the financial markets were being unsettled by the lack of clarity. But Merkel said in a radio interview that Greece was not in danger of default and aid for the country would not be a topic at the summit, which starts on Thursday. "There's no looming insolvency," Merkel told Deutschlandfunk. "I don't believe that Greece has any acute financial needs from the European community and that's what the Greek prime minister keeps telling me." She said it was the persistent speculation about a possible bailout that was creating the volatility in the financial markets and warned against raising "false expectations" that other eurozone economies would come to Greece's rescue. The euro took a tumble last week, dropping to $1.35, amid all the talk about a possible bailout. "I don't see that Greece needs money at the moment and the Greek government has confirmed that. That's why I'd urge us not to stir up turbulence in the markets by raising false expectations for Thursday's council meeting," Merkel said. – UK Guardian