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Germany warns it could veto Greek aid

in International Business

Germany warns it could veto Greek aid

According to a senior lawmaker, if Athens fails to comply with the terms of previous rescue packages, Germany will block any new aid to Greece.

Michael Fuchs, the deputy head of Chancellor Angela Merkel’s conservative party, has said that Berlin is ready to use its veto if it is unhappy with findings from the Greece creditors “troika”.

“You can quote me: even if the glass is half-full, that is not enough for a new aid package,” he said, “Germany cannot and will not agree to that.”

Germany, Europe’s largest economy, is waiting with eurozone partners for the report on Greece by inspectors from the European Union, International Monetary Fund and the European Central Bank, in order to determine whether Athens will receive the next instalment of 31.5bn euros in rescue funds.

 Mr Fuchs added that even if other eurozone countries agree to release the funds after seeing the report, “Germany will use its veto” if it concludes that Greece “has not met the requirements”.

 He also said that it is impossible to force a country out of the eurozone, but assumed the “Greek government knows what it needs to do if it is not in a position to fulfil the reform requirements” adding Germany “has reached the limits of what it can bear”.

 Mr Fuchs added he is against the European Central Bank providing further emergency loans to Greece, saying if Greece fails to live up to its reform pledges, then “the ECB cannot open up detour possibilities and provide money that the Greeks could not otherwise get from the European rescue funds”.

Members of Ms Merkel’s ruling coalition are already beginning to question whether Greece should continue to stay in the eurozone, as their patience wears thin with Greece’s faltering reform efforts.

 No decision will be made until the troika report is released, expected in mid September.

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