Brussels, 11/04/2014 (Agence Europe) - On Friday 11 April, German Chancellor Angela Merkel visited Athens amid tight security the day after the Greek government made a successful return to the medium-term bond market.
In a meeting with Greek entrepreneurs, Merkel said she strongly believed that, after a very, very difficult period, the country had countless opportunities to build upon, not all of which have been noticed yet. She hoped the Greek investment fund to be set up shortly, and in which Germany will be investing €100 million, would help solve the cash flow problem. Lending to companies and households remains tight in Greece, despite recapitalisation of the banks. Handelsblatt reported on Friday morning that Germany's involvement in the fund will be part of the German budget plans for 2014 and is due to be discussed by the German parliament in July.
The German press says that Merkel and the Greek Prime Minister Antonis Samaras will sign a memorandum of understanding on Friday on the creation of the Greek investment fund. As we were going to press, the two politicians had not yet made any public statements.
“Greece is gaining more potential despite the difficulties, despite high unemployment and the fact that many people still do not see any change”, said Merkel. The Greek prime minister said: “When Greeks make an effort, they succeed”.
In Athens, demonstrations were banned in the city centre for the duration of the German leader's visit and some 7,000 police officers were deployed in the city. The main opposition party, Syriza, issued a press release: “Merkel visits Athens to praise the government's destructive work and make sure that austerity continues”. On Thursday, Greece raised €3 billion from the money markets at a rate of 4.75%, with demand exceeding €20 billion. Interest rates rose slightly above 5% on Friday as the euphoria died down. (EL)