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Merkel rejects more debt relief for Greece

Saturday, 31 January 2015 11:00 AM [ Last Update: Sunday, 01 February 2015 3:51 AM ]

German Chancellor Angela Merkel

German Chancellor Angela Merkel says Greece should not be granted any additional debt relief, fueling tensions between the new Athens government and the so-called troika of international lenders.

“There has already been voluntary debt forgiveness by private creditors, banks have already slashed billions from Greece’s debt,” said Merkel in an interview with the German newspaper Hamburger Abendblatt on Saturday, adding, “I do not envisage fresh debt cancellation.”

The German leader said Europe would carry on supporting Greece if Athens implements the austerity measures under its bailout deal with the international creditors.

“Europe will continue to show its solidarity with Greece, as with other countries hard hit by the crisis if these countries carry out reforms and cost-saving measures,” said Merkel.

The remarks by Merkel come a day after Greece’s newly-elected anti-austerity Finance Minister Yanis Varoufakis said Athens would no longer cooperate with the troika – the European Commission, the International Monetary Fund (IMF) and European Central Bank (ECB).

In addition, Greece’s new Prime Minster Alexis Tsipras on January 28 stopped privatization plans of a number of public assets, including the port of Piraeus, the Public Power Corporation of Greece, airports, power grinds and motorways. The privatization plans were agreed upon under the country’s bailout deal with its international creditors.

The new government has also announced plans to rehire public servants who had suffered unfair layoffs and raise pensions for the elderly with low income.

The announcements came days after the Syriza leader, Tsipras, was sworn in on January 26 as Greek prime minister at the Presidential Palace in Athens, pledging to do his utmost to “to protect the interests of the Greek people.”

Syriza is a fierce opponent of Greece’s bailout deal with the International Monetary Fund and eurozone countries, and has vowed to reconsider the austerity measures that have caused mounting dissatisfaction in the country.

Greece has been relying on international rescue loans since 2010. It has received 240 billion euros (330 billion dollars) in international loans. In exchange, Athens has implemented harsh austerity programs.

The measures have forced people to endure multiple tax increases, along with cuts in pension and salary, in exchange for bailout loans by the troika.

CAH/MKA/HRB

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