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Monday, 20 August 2012 - German politicians say no leeway for Greece on reforms |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Video Reuters TV Reuters News Article Comments (0) Pictures Editor's choice Our best photos from the last 24 hours.  Slideshow  Follow Reuters Facebook Twitter RSS YouTube Read Astronomers discover planet made of diamond 25 Aug 2011 The world still thinks Americans are "coolest": poll 06 Sep 2011 TABLE-Top 20 best-selling vehicles in U.S. in June 03 Jul 2012 "Man vs. Wild" star Bear Grylls fired by TV network 14 Mar 2012 U.S. most armed country with 90 guns per 100 people 28 Aug 2007 Discussed 138 Obama’s lead over Romney grows despite voters’ pessimism 122 Romney to announce vice presidential choice Saturday 94 Analysis: Are Israelis tough enough for a long war with Iran? 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See the best of Reuters photography.  See more | Photo caption  Pussy Riot supporters Worldwide demonstrations in support of the Russian punk band.  Slideshow  Western wildfires Firefighters work to control wildfires across 10 drought-parched western states.  Slideshow  German politicians say no leeway for Greece on reforms Tweet Share this Email Print Related News Grexit debate stirs in Germany ahead of Greek PM visit Sat, Aug 18 2012 Budget breather for Greece would spur economic recovery: report Sat, Aug 18 2012 REFILE-Budget breather for Greece would spur economic recovery -report Sat, Aug 18 2012 Small states squabble over euro zone's future Fri, Aug 17 2012 Eurozone shuttle diplomacy to pick up pace before critical month Thu, Aug 16 2012 Analysis & Opinion Draghi engineers August lull, but wait for September Germany’s governing Christian Democrats call for gay couple tax equality Related Topics World » Greece » Greek Prime Minister Antonis Samaras addresses a parliamentary group of his party in Athens July 24, 2012. Credit: Reuters/John Kolesidis By Michelle Martin BERLIN | Sun Aug 19, 2012 2:57pm EDT BERLIN (Reuters) - Senior German politicians stepped up the pressure on Greece to stick to its reforms before the Greek prime minister visits Berlin this week and made clear that there was no appetite in the German parliament for a third aid package. Greek leader Antonis Samaras, facing mounting social and political discontent at home, is expected to ask for a two-year extension to the deadline international lenders have set when he meets the leaders of Germany and France this week. Greece, in its fifth year of recession, has fallen behind on its targets and will probably need to make 14 billion euros ($17 billion) in cuts rather than a previously expected 11.5 billion over the next two years to meet terms for international aid, according to Germany's Der Spiegel magazine. But more than two years after Greece won its first bailout, patience is wearing thin in Germany, Greece's biggest lender, where Samaras meets Chancellor Angela Merkel on Friday. "It is not responsible to throw money into a bottomless pit," Finance Minister Wolfgang Schaeuble said on Saturday at a government open day in Berlin. Norbert Barthle and Michael Meister, both senior politicians in Merkel's Christian Democrat party (CDU), told Tagesspiegel's Monday edition that there would be no third aid package for Greece while Volker Kauder, head of the conservatives in parliament, said Greece must stick to what it had agreed. Kauder told Spiegel that Athens, which has not achieved the budget cuts and privatizations it promised in March to secure a second, 130-billion euro bailout, must honor its agreements. "There is no room for maneuver there, neither in terms of the time frame nor in terms of the substance because that would be another breach of the agreements," he was quoted as saying. Kauder added that he saw little chance of a third aid package for Greece finding support in Germany's ruling coalition even though Greek insolvency would cost Germany dear: "There cannot always be new programs or moderated conditions. The Greeks must at some point answer the question: Are we going to make an effort or are we going to leave the euro?" GERMANY: GREEK AID NOT NEGOTIABLE But despite growing calls in Germany for a Greek exit, 45 of 64 economists polled by Reuters in August expect Greece to still be in the currency bloc in 12 months' time, compared with 35 of 64 economists in a similar poll in May. The chairman of the euro finance ministers' group said on Saturday that Greece would not leave the euro zone unless the country "totally refuses" to fulfill any of its reform targets. "It will not happen, unless Greece were to violate all requirements and not to stick to any agreement," Eurogroup President Jean-Claude Juncker was quoted as saying in Austria's Tiroler Tageszeitung newspaper. European Energy Commissioner Guenther Oettinger said the euro zone should keep Greece on board if at all possible and warned against the unknown consequences of a Greek exit in an interview with Germany's Frankfurter Allgemeine Sonntagszeitung. But resistance to giving Athens any leeway extends to the Free Democrats (FDP), the junior partner in Merkel's coalition. FDP General Secretary Patrick Doering said in an advance copy of an article due to appear in Tagesspiegel on Monday that the basis for aid was "the second aid package and the conditions to which Greece has committed itself. That is not negotiable." That will disappoint Athens, where finance ministry officials have calculated that the country's debt would be more sustainable if it had two more years to cut its budget deficit, according to a Greek newspaper. Recession is increasing Greece's debt burden relative to its shrinking economy. Economy Minister and FDP leader Philipp Roesler, who caused a stir last month by saying a Greek euro zone exit had lost "its fear factor", also warned against easing Greece's saving targets: "Those who don't stick to the rules and the promises made cannot expect financial help," he told Spiegel Online. German Foreign Minister Guido Westerwelle urged more solidarity with the Greek people but told Tagesspiegel's Sunday edition that Germany would not consider easing agreed reforms "in their substance", calling on the Greek government to "take the German government's position very seriously". Inspectors from the International Monetary Fund, the European Commission and the European Central Bank - known as the troika - are due back in Greece in September. ($1 = 0.8132 euros) (Reporting by Michelle Martin; Editing by Ruth Pitchford) World Greece Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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