Merkel tries to reassure nervous German voters over Greece

[dipsydoodle]

Source: Reuters

(Reuters) - German Chancellor Angela Merkel sought to reassure voters on Sunday that Greece would not need a debt write-down but left open the option of more aid for Athens as she struggled to contain a dispute which could hurt her in next month's election.

Finance Minister Wolfgang Schaeuble provoked a storm last week when he told a campaign rally that a new rescue for Greece was inevitable in comments that contradicted Merkel, who has said it is too early to discuss additional aid. The subject has dominated the election campaign ever since.

Merkel has tried to keep Greece out of her campaign to avoid angering Germans who fear they will foot the bill for more bailouts. She is tipped to win a third term in the September 22 poll partly because voters approve of her management of the euro zone crisis and her tough line with struggling states.

The chancellor on Sunday did not rule out a further Greek bailout, saying the euro zone would look again at the situation in the country in 2014, but she told Focus magazine that she did not see a debt haircut for Greece.

Read more: http://uk.reuters.com/article/2013/08/25/uk-germany-election-greece-idUKBRE97O0B820130825

[PoliticAverse]

1. Greece will need more bailing out... and by that I really mean the banks

that lent to Greece.

[dipsydoodle]

2. I don't think there are remaining loans from banks

which have not already been written down and settled using ECB and IMF funds to reduce interest payments. That was what sunk the two main Cypriot banks.

It was inevitable that German taxpayers would balk at their own funds being written down further. Merkel may have difficulty in keeping the subject out of their Federal elections next month.

[tabasco]

3. I wish Germans would throw her sorry CDU ass out

The CDU is trying to do to Germany what the repukes are trying to do here.

[DallasNE]

4. Of Course Merkel Doesn't Want To Discuss Tough Choices Just Before The Election

But FM Schaeuble didn't get the memo and in a moment of honesty gave the German people an honest assessment. Amazing, too, how the German people don't seem to mind extreme austerity for other countries while the German economy somewhat prospers. Without America's love affair with expensive German cars the German economy would be taking its lumps as well. The economy in the Eurozone is still in the dumps though it has bounced back slightly following a monetary policy change toward quantitative easing. Merkel has, frankly, been an anchor on the Eurozone economies and only embarked on QE as the election nears. Even here she is conceding action will need to be taken in 2014 so she needs to lay on the table what those actions are likely to be. No blank checks Germany and that is just what Merkel is asking for so don't be fooled by the lame talk. Ask hard questions and demand answers. Real answers.