Greece will struggle to cut its debt load as envisaged by international assessors even with the return of modest economic growth next year, said German Christian Democratic Union lawmaker Michael Fuchs.
The International Monetary Fund’s executive board is split on the need for German Chancellor Angela Merkel’s government to do more to boost the economy while it united in criticizing the country’s trade surplus.
International Monetary Fund Managing Director Christine Lagarde said she is confident euro-area nations will deliver on their pledge to help Greece lower its public debt to the level agreed on in a joint bailout package.
Europe’s leaders should brace for four more years of unbending German policies to fight Europe’s debt crisis as Chancellor Angela Merkel leads the polls seven weeks before elections, one of her senior party allies said.
German Finance Minister Wolfgang Schaeuble said Europe must keep up pressure on Greece to stand by its austerity pledges as he rejected the notion that the upcoming election has put debt-crisis management on hold.
The parliamentary finance-policy spokesman for Chancellor Angela Merkel’s bloc said he’s confident that Germany will persuade more European countries to join it in rejecting a single fund to wind down troubled banks.
No sooner did European creditors plug one hole in Greece’s finances than they started fretting over the next as the 3 1/2-year tussle between the Athens government and its rescuers looked set to drag into 2014.
Germany’s Vice Chancellor Philipp Roesler ruled out another debt cut for Greece, saying that Europe’s largest economy can better aid Greeks by helping to modernize their country’s energy infrastructure.