Tuesday 27 April 2010

German Opposition to Greek Debt Bailout Gathers Pace

THE GUARDIAN: Left and right unite to condemn Greece's 'blank cheque' rescue / Election in Germany's NRW state inflames opposition to bailout

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Angela Merkel looking drawn and tired. Photo: The Guardian

Proposals for a rescue package for debt-ridden Greece have stoked a fierce political row in Germany with opposition towards a bailout growing within parties from both the left and the right.

Germany's reluctance to participate in the deal is summed up today in a single newspaper headline, which read 'Angst surrounds giving Greece blank cheque'.

The rescue plans have even caused a rift within the German government as arguments rage over how much Europe's largest economy should contribute to the fund, under what conditions and even whether any help should be forthcoming at all.

Among the loudest opponents are the liberal Free Democratic Party (FDP), junior coalition partners in chancellor Angela Merkel's government, who have warned against turning the European Union into a 'transfer union' at the expense of Germany, the club's biggest economic power.

"We cannot issue any blank cheques," said the FDP's chief, Guido Westerwelle. "Greece has first and foremost to do its homework and sort out its own household."

Meanwhile leading members of the Christian Social Union, (CSU), the sister party to Merkel's Christian Democrats, have even suggested that Greece should withdraw from the euro. >>> Kate Connolly in Berlin | Monday, April 26, 2010