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Reuters: Analysis - Berlin seeks time to resolve own Greek aid dilemma (16 June 2011)
Germany wants Europe to postpone a new bailout deal for Greece to buy time for a compromise on involving private creditors that does not look like a climbdown that would entail political risks for Chancellor Angela Merkel.

Merkel will try to resolve this dilemma in talks on Thursday with the European Central Bank's Mario Draghi and on Friday with French President Nicolas Sarkozy, with the ECB, Paris and European Commission all questioning Berlin's position.

Interestingly, she's not meeting Trichet, she's meeting Draghi. That must be because Draghi is chairman of the Financial Stability Board, not because he's part of the ECB.
"The argument goes: We don't know what to do, let's buy more time," said an EU source, blaming Merkel and Finance Minister Wolfgang Schaeuble, whose proposal that private creditors accept a bond swap to extend Greek debt maturities now looks in doubt.

Economics is politics by other means
by Migeru (migeru at eurotrib dot com) on Sat Jun 18th, 2011 at 08:32:09 AM EST
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