Merkel-Schaeuble Differences Over Greece Talks Said to Widen (2)
2015-06-09 09:40:04.799 GMT
(Updates with comment from Merkel’s parliamentary whip in
fourth paragraph.)
By Birgit Jennen, Rainer Buergin and Brian Parkin
(Bloomberg) -- A split between German Chancellor Angela
Merkel and Finance Minister Wolfgang Schaeuble is widening over
Greece as the funding standoff goes down to the wire, said
people familiar with the matter.
Merkel is ready to make concessions to keep Greece in the
euro because of geopolitical concerns, while Schaeuble is
willing to let the country exit the euro unless its government
takes measures to ensure the country’s long-term survival in the
monetary union, said the people, who asked not be identified
speaking about internal party discussions.
That divide is also reflected in Merkel’s parliamentary
caucus, which is increasingly uneasy with letting the 41-member
budget committee decide on disbursing any aid and is looking
instead at a vote of the lower house of parliament on a deal
that includes alterations to previous agreements, they said.
“If there are changes, which surely is what we have to
assume, then the Bundestag as a whole would have to vote
again,” Michael Grosse-Broemer, chief parliamentary whip for
the Christian Democratic Union, told reporters in Berlin on
Tuesday. “This can’t just be left to the budget committee.”
Greece is deadlocked with creditors over the conclusion of
a multi-year bailout program expiring at the end of the month,
with Prime Minister Alexis Tsipras calling the latest offer “a
bad negotiating trick.” The Greek delegation in Brussels on
Tuesday submitted a three-page proposal to creditors that only
covers financial targets in a bid to unlock bailout funds, two
international officials with direct knowledge of the discussions
said.
Marginal Risk
While Merkel has repeatedly said she’ll keep working to
allow Greece to stay in the euro area, Schaeuble has emphasized
that the contagion risk from the country possibly exiting the
bloc is “marginal.” The Finance Ministry declined to comment
on the internal deliberations and referred to statements last
week by spokesmen for the two who said they’re working together
closely on the crisis.
Many lawmakers in Merkel’s 311-strong parliamentary group
made up of the CDU and Bavarian Christian Social Union are
finding it difficult to support the chancellor’s position and
would side with Schaeuble if forced to choose, the people said.
“All of us who were at the table want Greece to stay in
the euro area,” Merkel said Monday after hosting the Group of
Seven summit at Schloss Elmau in Bavaria. “There isn’t much
time left, that’s the problem.”
Confidence Vote
Some within her caucus are discussing whether Merkel would
need to tie any decision on the bailout program to a confidence
vote to rally lawmakers behind her, one of the people said. Any
agreement that doesn’t spell out binding reform obligations
wouldn’t be accepted even among those siding with Merkel, the
people said.
Lawmakers from all coalition parties, including the Social
Democrats, want time to scrutinize any proposal and therefore
would object to a last-minute vote in Germany’s lower house of
parliament at the end of the month, the last week the Bundestag
is in session before the summer break, one person said.
For Related News and Information:
G-7 Unites to Push Greece on Resolving Creditor Standoff
If You Think Greece’s Crisis Will End Soon, Think Again
Tsipras Says Deal Near Even as He Pans Greek Creditors’ Plan
Top Stories:TOP<GO>
--With assistance from Arne Delfs in Berlin and Nikos
Chrysoloras in Athens.
To contact the reporters on this story:
Birgit Jennen in Berlin at +49-30-70010-6235 or
bjennen1@bloomberg.net;
Rainer Buergin in Berlin at +49-30-70010-6228 or
rbuergin1@bloomberg.net;
Brian Parkin in Berlin at +49-30-70010-6229 or
bparkin@bloomberg.net
To contact the editors responsible for this story:
Alan Crawford at +49-30-70010-6237 or
acrawford6@bloomberg.net
Chad Thomas, Leon Mangasarian
2015-06-09 09:40:04.799 GMT
(Updates with comment from Merkel’s parliamentary whip in
fourth paragraph.)
By Birgit Jennen, Rainer Buergin and Brian Parkin
(Bloomberg) -- A split between German Chancellor Angela
Merkel and Finance Minister Wolfgang Schaeuble is widening over
Greece as the funding standoff goes down to the wire, said
people familiar with the matter.
Merkel is ready to make concessions to keep Greece in the
euro because of geopolitical concerns, while Schaeuble is
willing to let the country exit the euro unless its government
takes measures to ensure the country’s long-term survival in the
monetary union, said the people, who asked not be identified
speaking about internal party discussions.
That divide is also reflected in Merkel’s parliamentary
caucus, which is increasingly uneasy with letting the 41-member
budget committee decide on disbursing any aid and is looking
instead at a vote of the lower house of parliament on a deal
that includes alterations to previous agreements, they said.
“If there are changes, which surely is what we have to
assume, then the Bundestag as a whole would have to vote
again,” Michael Grosse-Broemer, chief parliamentary whip for
the Christian Democratic Union, told reporters in Berlin on
Tuesday. “This can’t just be left to the budget committee.”
Greece is deadlocked with creditors over the conclusion of
a multi-year bailout program expiring at the end of the month,
with Prime Minister Alexis Tsipras calling the latest offer “a
bad negotiating trick.” The Greek delegation in Brussels on
Tuesday submitted a three-page proposal to creditors that only
covers financial targets in a bid to unlock bailout funds, two
international officials with direct knowledge of the discussions
said.
Marginal Risk
While Merkel has repeatedly said she’ll keep working to
allow Greece to stay in the euro area, Schaeuble has emphasized
that the contagion risk from the country possibly exiting the
bloc is “marginal.” The Finance Ministry declined to comment
on the internal deliberations and referred to statements last
week by spokesmen for the two who said they’re working together
closely on the crisis.
Many lawmakers in Merkel’s 311-strong parliamentary group
made up of the CDU and Bavarian Christian Social Union are
finding it difficult to support the chancellor’s position and
would side with Schaeuble if forced to choose, the people said.
“All of us who were at the table want Greece to stay in
the euro area,” Merkel said Monday after hosting the Group of
Seven summit at Schloss Elmau in Bavaria. “There isn’t much
time left, that’s the problem.”
Confidence Vote
Some within her caucus are discussing whether Merkel would
need to tie any decision on the bailout program to a confidence
vote to rally lawmakers behind her, one of the people said. Any
agreement that doesn’t spell out binding reform obligations
wouldn’t be accepted even among those siding with Merkel, the
people said.
Lawmakers from all coalition parties, including the Social
Democrats, want time to scrutinize any proposal and therefore
would object to a last-minute vote in Germany’s lower house of
parliament at the end of the month, the last week the Bundestag
is in session before the summer break, one person said.
For Related News and Information:
G-7 Unites to Push Greece on Resolving Creditor Standoff
If You Think Greece’s Crisis Will End Soon, Think Again
Tsipras Says Deal Near Even as He Pans Greek Creditors’ Plan
Top Stories:TOP<GO>
--With assistance from Arne Delfs in Berlin and Nikos
Chrysoloras in Athens.
To contact the reporters on this story:
Birgit Jennen in Berlin at +49-30-70010-6235 or
bjennen1@bloomberg.net;
Rainer Buergin in Berlin at +49-30-70010-6228 or
rbuergin1@bloomberg.net;
Brian Parkin in Berlin at +49-30-70010-6229 or
bparkin@bloomberg.net
To contact the editors responsible for this story:
Alan Crawford at +49-30-70010-6237 or
acrawford6@bloomberg.net
Chad Thomas, Leon Mangasarian