MW: Germany cautions on rushing into third bailout deal for Greece
BERLIN — German Chancellor Angela Merkel’s government cautioned on Monday that it wouldn’t rush into a bailout deal between international creditors and cash-strapped Greece.
“Of course, a speedy conclusion of the negotiations is desirable, but we must not forget that this is about a three-year program, a program with a comprehensive list of reforms and additional measures, a program that should then be a long-term reliable basis for cooperation,” Merkel’s spokesman, Steffen Seibert, said at a news conference. “Thoroughness comes before rapidness.”
Athens and its creditors are under pressure to secure a third bailout deal by Aug. 20 to prevent Greece from defaulting on 3.2 billion euro ($3.51 billion) worth of bonds owned by the European Central Bank.
Greek officials are negotiating with four institutions overseeing the rescue program—the European Commission, International Monetary Fund, ECB and the eurozone’s own bailout fund—with the aim of agreeing on a third loan package of up to €86 billion, and securing a first tranche of aid from the bailout.
A new bailout for Greece is a controversial issue in Germany, which is the country’s largest creditor. Germany’s Bundestag and several other European parliaments must back a third rescue package. Over the weekend, the parliamentary floor leader of Merkel’s conservative bloc in parliament, Volker Kauder, caused an uproar among his lawmakers after he said those members of parliament who voted against authorizing the start of bailout talks in July should be excluded from parliamentary committees dealing with the Greek issue.
