German Free Democratic Party budget spokesman Otto Fricke said “things point in the direction of a first-loss model” for the enhancement of the European Financial Stability Facilty that aims to boost the backstop’s firepower. Fricke made his comments to reporters today in Berlin, saying he won this impression after briefings by German Finance Minister Wolfgang Schaeuble today and yesterday in Berlin.
Greece may not be able to avoid restructuring its debt before summer’s end, said Otto Fricke , the parliamentary budget spokesman for Chancellor Angela Merkel ’s Free Democratic Party coalition partner.
German Chancellor Angela Merkel ’s Free Democratic allies are threatening to impose more conditions on future euro-area bailouts as they seek to tap voter anger over granting aid to reverse the party’s collapse in support.
German Finance Minister Wolfgang Schaeuble said that Greece will have to carry out extra savings before more international aid is freed up, tightening the screws on the Greek government as it faces down budget-cut protests.
Lawmakers from Chancellor Angela Merkel’s coalition want to tie German support for Greece’s second bailout to conditions, including the completion of a debt swap by private investors, when they vote on the plan in parliament on Feb. 27.