15 May 2012

FT: Merkel and Hollande spell out Greek fear

The leaders of France and Germany joined forces to urge Greece to reaffirm its commitment to membership of the eurozone, after François Hollande flew to Berlin for talks with Angela Merkel, the German chancellor.

Both spelt out their concern that Greece should remain a full member of the common European currency, while promising to consider new measures to revive economic growth in the country. But they also agreed that Athens must carry out the austerity programme it has agreed with the European Union and the International Monetary Fund.

“We want Greece to stay in the euro”, Ms Merkel said. “We know that the majority of people in Greece see that.” The Greek government had also agreed on a rescue programme with the IMF and the EU after lengthy negotiations, she said. “I believe that memorandum must be respected. We have to respect that there will be new elections in Greece”, she added. “We will make it clear that we want Greece to remain in the eurozone, and that is what the citizens are voting on.”

Mr Hollande went further, saying: “I hope that we can say to the Greeks that Europe is ready to add measures to help growth and support economic activity, so that there is a return to growth in Greece”.

Mr Hollande said political rivalry had not undermined the relationship in the past, but he stuck to his constant theme in his election campaign that Europe had to focus on reviving economic growth, as well as reducing public debt and budget deficits, which Ms Merkel insists is a “precondition for sustainable growth”.

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