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Angela Merkel does not see a new haircut for Greece

What is the real concern of the Staff of the German Chancellor?

The debate over the Greek debt haircut continues in German media but what seems to be of a greater concern for Merkel’s team is the political strength of the Greek government before and after the German elections.

For the second time in a week the German Chancellor said she does not see a new haircut for Greece, according to Deutsche Welle. In today's interview with the Ruhr Nachrichten newspaper, Merkel says "no, I do not see such a new haircut for Greece. We take one step at a time and we do not hide the fact that a lot of things should change in Greece, but on the other hand, we see clear progress and recognize it. In some areas things in Greece are going much better than a year ago."

 

She adds that "on the Eurozone level we always said we will review the situation in Greece in 2014 or early 2015. The right thing is to follow this schedule." Speaking generally about the Eurozone, Merkel says the crisis has not passed but "there is undoubted progress, which has been seen also by investors around the world."

Meanwhile, diplomatic circles in Berlin insist the real concern of the staff of the German Chancellor is whether the strength of the Greek government will ensure a stable interlocutor for Troika within the next six months. They believe that the Eurozone needs one in Athens that can handle the critical choices to be made in view of the elections in the spring of 2014, with Greece having the Presidency seat.

Among them is the way Europe will carry out the restructuring of the Greek debt that is considered a key element of the EU strategy for the next German government.

Already the team of expert operating from July under the supervision of Olli Rehn and including representatives of Eurozone finance ministers, dealing with the registration of alternative proposals for the restructuring of Greek debt, has made its first round of estimates.