Brussels, 16/07/2012 (Agence Europe) - German Chancellor Angela Merkel has repeated her view about financial aid for struggling countries. Speaking on Germany television (ZDF) on Sunday 15 July, she ruled out any idea of uncontrolled solidarity with nothing in return, which she said would have no chance because she would oppose it, Germany would oppose it.
As far as Merkel is concerned, there must be greater cooperation and a transfer of sovereignty to Brussels before there is any pooling of debt. She added that there must be inspections of any country in receipt of financial aid and there will be conditions attached to Spain's bailout plan.
Merkel added that the Spanish government would have to stand as guarantor for the aid for its banks and there had been no discussion about changing this at the 28-29 June Summit. She hopes by this comment to lay this question to rest.
In the German press last week, Klaus Regling, who will soon become the head of the European Stability Mechanism (ESM) (see EUROPE 10652), which will be replacing the EFSF, said that it was possible for countries to avoid having to stand as guarantors for the repayment of loans to their banks, a comment also made by the head of the Eurogroup, Jean-Claude Juncker, and EU Economic and Monetary Affairs Commissioner, Olli Rehn, after the meeting of eurozone finance ministers on Monday 9 July (see EUROPE 10652). These statements were contradicted the same day by Germany's finance minister, Wolfgang Schäuble, who said he expected countries to guarantee the loans.
In her interview with ZDF, Merkel talked about Greece, which she said must meet its “commitments”. She refused to talk about the Greek bailout package ahead of the debriefing from the next troika fact-finders (from the ECB, the European Commission and the IMF), expected to arrive in Athens on 24 July (see EUROPE 10655).
The €100 billion EU aid to bail out Spanish banks will be voted upon by Germany's parliament on Thursday 19 July. Merkel was confident she would win the majority needed to win the vote, just as she managed to get the ESM and the Budget Pact through parliament on 29 June. The ESM and the Budget Pact are on hold, however, because Left group Die Linke has appealed against them to the German constitutional court in Karlsruhe (see EUROPE 10640), which announced on Monday 16 July that it will be not be ruling on the appeal until 12 September 2012 (see related article). (EL/transl.fl)