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WSJ:German Govt: Merkel Wants To Stabilize Greece Within Euro Zone
 
BERLIN (Dow Jones)--German Chancellor Angela Merkel wants to keep Greece in the euro zone, with solidarity to be provided if Athens makes its own efforts to overcome its ballooning debt situation, her spokesman said Monday.

Spokesman Steffen Seibert stressed that Merkel doesn't share the view of her interior minister, who over the weekend was the first cabinet member to encourage Greece to leave the euro zone. Interior Minister Hans-Peter Friedrich said an interview with Der Spiegel weekly magazine it would be easier for Athens to renew itself and get more competitive outside the single currency zone.

"She doesn't share this view, she fully backs the motion which will be decided in the Bundestag lower house today and this has always been her position," Seibert told reporters in a news conference. "The issue is to stabilize Greece within the euro zone with the help of European solidarity on the one side and massive Greek own-efforts on the other side. This is the policy, that's what the second Greece aid package is about."

Germany's lower house of parliament is scheduled to vote on a second Greek bailout package, worth EUR130 billion, later Monday. Seibert said he is optimistic that the lower house will approve the package with a broad majority.

The comments by the interior minister highlight the growing dismay--particularly within Merkel's sister party, the Bavarian Christian Social Union, of which Friedrich is a member--about providing further aid for Greece.

German Finance Minister Wolfgang Schaeuble stirred fresh uproar in the coalition Friday when didn't rule out that Greece might even need a third rescue package. The warning had come after he criticized earlier this month that there might be a "bottomless pit" in Greece.

-By Andrea Thomas, Dow Jones Newswires; +49 30 2888 4125; andrea.thomas@dowjones.com
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