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article imageBerlin to refuse fresh aid for Greece

By Katerina Nikolas     Jul 23, 2012 in World
Berlin - An unidentified German government source has disclosed that Berlin's patience with Greece has worn out and no further loans will be extended to Athens.
According to Der Spiegel the German newspaper Süddeutsche Zeitung quotes an unnamed government source saying it was "inconceivable that Chancellor Angela Merkel would again ask German parliament for approval for a third Greece bailout package."
The report follows that of unnamed European officials stating that the International Monetary Fund (IMF) is also about to pull the plug on Greece.
The official German position as outlined by German Finance Minister Wolfgang Schaeuble in an interview on Monday is that "I will not preempt the troika. When the troika report is ready, the Eurogroup will meet." However, the reports which are coming in from behind the scenes indicate the troika has already taken the decision to curtail further financing to Greece, despite the election of a pro-EU coalition government in the June election.
Additionally Ekathimerini reported Alexander Dobrindt, general secretary of Germany's Christian Social Union has said Athens should start paying half of its pensions and wages in drachmas in preparation for a Euro exit. He said "With Greece we have reached the end of the road. There must not be any further aid. A country which does not have the will to fulfil the conditions, or is not able to do so, must get a chance outside the euro."
The unofficial reports indicating Greece could be forced into a Euro withdrawal by September come as Athens is due to receive the Troika on July 24. Greek Finance Minister Yannis Stournaras has been hastily preparing proposals for an additional 11.5 billion Euros cuts in further austerity measures, to present to the Troika for approval this week.
More about Greece crisis, troika, wolfgang Schäuble, Alexander Dobrindt, samaras
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