German press eyes Merkel visit

The German press are looking at Ms Merkel's visit to Athens through lenses of different hues. Comments are varied, with most commentary on yesterday's Greek bond sale being positive, and most media agreeing that the visit is partly in support of the Greek government's efforts

Angela Merkel is expected to sign an MoU with Greek counterpart Antonis Samaras for the creation of a Greek Investment Fund, along the lines of the German KfW, according to German newspaper Handelsblatt.

The two leaders want to promote the establishment of a bank to aid SMEs with low rate loans, with the two countries contributing 100 million euros. However, the deal had been agreed upon last June, when German finance minister Wolfgang Schauble had strongarmed the EU, France, and the European Investment Bank aboard.

However, things were moving at a snails pace, and wishing to waste no more time the decision was to go it bilaterally. There is an issue, though, as the funding given by Germany through the KfW must be foreseen through the state budget, which is expected to go into force in July. According to Handelsblatt, the German finance ministry is examining ways to commit the KfW earlier.

Die Welt leads off with “Greece is Once Again Fiscally Reliable,” noting that demand reached 20 billion euros, something, however, which economists feels is of little import. Die Welt also carries the positive messages and admonitions for continuation on the path to reform from commissioner Siim Kallas and IMF director Christine Lagarde. Mention is also made of the heavy police measures in Athens ahead of the chancellor's visit and the explosion against the Bank of Greece, on Thursday.

Frankfurter Allgemeine Zeitung headlines “Six Reasons Why Greece May Hope”, which include Athens' return to markets, positive messages from banks, the decrease of troika influence, a reemergence of construction activities, a bounce back of the private sector, and good news for the economy.

The newspaper cites roadworks as a resurgence in construction, the rise in tourism as benefiting the private sector, and a 2.9% IMF projected growth among such positive signs. But despite these shaky indicators, the FAZ notes the threat from populist forces (obviously a snipe at SYRIZA) and that Greek public administration is still very far from the level needed or sustainable development.