Germany dismisses Spain’s pleas for help

Merkel saying no to more cash
Merkel saying no to more cash

German Chancellor Angela Merkel has angrily dismissed pleas from Italy and Spain for financial aid as a rift develops that could shatter attempts to find a fix for the crisis at a meeting of EU leaders today.

Ms. Merkel was in Paris last night for emergency talks with French president Francios Hollande but before she left Germany she told her MP’s at the Bundestag, the lower house of parliament in Berlin, that instead of continuing to provide cash bailouts for the Eurozone more effort was needed to step up debt reduction and economic reforms.

“I fear that at the summit we will talk too much about all these ideas for joint liability and too little about improved controls and structural measures,” she said.

Spanish Prime Minister Mariano Rajoy said he would ask other EU leaders to allow euro bailout funds or the European Central Bank to stabilise financial markets by assisting in the reduction of borrowing costs, which are currently running at nearly 7% for Spain.

“We can’t keep funding ourselves for a long time at the prices we’re currently funding ourselves,” Rajoy said. “There are institutions and also financial entities that cannot access the markets. It is happening in Spain, it is happening in Italy and it is happening in other countries.”

Spain’s central bank said the recession is likely to deepen in the second quarter of this year while official figures show the government’s deficit had reached 3.41% of GDP in the first five months of the year, already approaching the 3.5 % target for the year.

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3 thoughts on “Germany dismisses Spain’s pleas for help

  1. Germany starting to play hard ball? Merkel will back down, she has no choice. Otherwise the whole of the euro will simply cave in. It’s only a few countries propping it up and that’s Germany included!

  2. DQ

    Screw Merkel and the whole euro fiasco! Spain needs to show Merkel and the other idiots to the door and print their own currency!

    The euro was never going to succeed anyway, it was a failure before it started. One country should not have the financial say-so over another. Spain needs to find some balls and fix it themselves! No cutting programs for the people either. Just announce that they are no longer interested in being manipulated by the elite and go back to printing their own currency.

    Same goes for Italy.

    And, while I’m on a roll, why should Germany give money to countries who mis-managed their own finances???? Germany is NOT responsible for any other country! If Germany can manage to do a great job on their own, they should keep their own money!

    DQ

  3. Jose

    Spain would want more bail outs until all of Europe is bankrupt. The solution is for governments in Europe to stop bailouts, and overspending or all of Europe goes bust.

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