Two-thirds of Germans oppose cutting debt states any slack

Two-thirds of Germans oppose cutting debt states any slack

By Gareth Jones

Saturday, July 14, 2012

Nearly two-thirds of Germans oppose giving heavily indebted countries in the eurozone more time to meet reform commitments, according to a poll published yesterday that highlights the domestic political constraints facing chancellor Angela Merkel.

Ahead of elections in 2013, Ms Merkel is resisting foreign pressure to cut eurozone stragglers such as Greece more slack as it tries to enact German-inspired austerity measures in a recession. She says fiscal discipline iscrucial for recovery.

The ZDF-Politbarometer survey also showed 63% of Germans backed Ms Merkel?s handling of the euro crisis, up from 60% in May, though a majority also thought she should explain her policies better, echoing criticism from Germany?s President Joachim Gauck, a ceremonial, non-partisan figure.

Greece has asked lenders for an additional two years to implement deficit-cutting measures, citing a deeper-than-expected recession, but Germany has rejected this request.

Ms Merkel?s spokesman Steffen Seibert reiterated yesterday that Greece must stick to both "the content and the timetable" set out in its memorandum of understanding with international lenders.

In contrast, Spain won permission from eurozone finance ministers this week to take an extra year to reach its deficit-reduction targets in exchange for further budget savings.

More than half of Germans taking part in the poll rejected a mutualisation of eurozone debt, or euro bonds, even if Europe moves towards a common fiscal policy as Berlin wants.

Ms Merkel says Germany could accept euro bonds only at the end of a process of fiscal and political unification in Europe. Otherwise Germany fears heavily indebted states such as Italy and Greece would lose incentive to reform their economies.

Germans are increasingly worried about the financial costs of rescuing the eurozone. A number of citizens have joined academics and lawmakers in seeking an injunction from the Constitutional Court to block approval of the eurozone?s bailout fund.

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This appeared in the printed version of the Irish Examiner Saturday, July 14, 2012

Source: http://feeds.examiner.ie/~r/iebusiness/~3/jE5fWJ2fXHk/

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