Thursday, May 10, 2012

Germany warns Greece it will halt aid unless it commits to bailout agreements


German Chancellor and Christian Democratic Union (CDU) party leader Angela Merkel reacts before a party board meeting in Berlin, May 7, 2012


Ministers in Berlin warned that they would withhold international aid to Greece in a move which could trigger a fresh, damaging countdown to default in Athens.

Amid escalating anger in Berlin over the anti-euro backlash following elections in Athens, Greece will on Thursday receive a €4.2bn (£3.4bn) cash injection as part of its €130bn March bail-out. The eurozone has blocked a further €1bn amid uncertainty over the country's political future.

Athens, where the leader of the newly powerful Syriza party has vowed to reject the bail-out, is due to repay a €3.3bn bond next Friday.

But Germany’s foreign minister Guido Westerwelle said Greece must “recognize what’s going to happen if it repeals agreements that have been made”.

Speaking at a conference that ironically was marking Europe Day, Mr Westervelle said: “If Greece ends the reform process it has undertaken, then I can’t see that the respective tranches [of aid] can be paid out.”

The Telegraph

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