Angela Merkel Makes Clear Greece Needs to Honour Agreement

German Chancellor Angela Merkel has ruled out cancelling any of Greece’s debt, saying banks and creditors have already made substantial cuts.

But Mrs Merkel told the Die Welt newspaper she still wanted Greece to stay in the eurozone.

Greece’s left-wing Syriza party won last weekend’s election with a pledge to have half the debt written off.

Its new finance minister has refused to work with the “troika” of global institutions overseeing Greek debt.

The troika – the European Commission, European Central Bank and International Monetary Fund – had agreed a €240bn (£179bn; $270bn) bailout with the previous Greek government.

But Finance Minister Yanis Varoufakis has already begun to roll back the austerity measures the creditors had demanded as part of the deal.

Meanwhile, EU economic and financial affairs commissioner Pierre Moscovici told the BBC’s Hardtalk that Greece had to honour its previous commitments, although he said he wanted Greece to remain in the eurozone.

via BBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.