Tuesday, August 27, 2013

Angela Merkel: Greece Should Never Have Been Allowed in the Euro

THE DAILY TELEGRAPH: Angela Merkel has said Greece should never have been allowed into the euro and put the blame on former chancellor Gerhard Schroeder.

The German leader’s outburst came as she attempted to prove to voters she maintains a tough stance on struggling euro countries, just a month before facing key elections.

“Greece shouldn’t have been allowed into the euro,” Ms Merkel told around 1,000 supporters of her Christian Democratic Union in Rendsburg on Tuesday.

“Chancellor Schroeder accepted Greece in [in 2001] and weakened the Stability Pact, and both decisions were fundamentally wrong, and one of the starting points for our current troubles.”

Ms Merkel reiterated her desire to see a strong single currency, but warned that this can only be achieved through reforms in struggling countries such as Greece.

“That [a unified euro area] is such a treasure, such a boon, that we can’t place it in doubt,” she told her supporters. “That’s why the euro is more than a currency. For this reason we’ve shown solidarity, but solidarity always linked to responsibility for reforms in those countries that experience our solidarity.” Read on and comment » | Andrew Trotman | Tuesday, August 27, 2013