Germany is prepared to help Greece, but only if private creditors are involved in any new bailout plan. The European Central Bank, however, remains opposed to any kind of debt restructuring. German commentators say the ECB, having bought billions in Greek bonds, is too deeply involved to be independent.
The European Central Bank may not think much of the German government's plans to save Greece from its debt crisis, but at least German Finance Minister Wolfgang Schäuble has found support at home. On Friday, the German parliament, the Bundestag, voted in favor of a motion that clears the way for more aid for Athens.
The motion was proposed by the coalition parties -- the conservative Christian Democratic Union, its Bavarian sister party the Christian Social Union and the business-friendly Free Democratic Party -- and ties support for a new bailout to certain conditions. Those include the involvement of private creditors in a new rescue effort and greater privatization and austerity efforts on the part of the Greeks. The non-binding motion is designed to provide Berlin with guidelines for upcoming negotiations with Germany's European partners over a new bailout package for Greece.It is unclear, however, if Berlin will be able to push through its plan to make private creditors share the pain, something that the European Central Bank is resisting. On Thursday, ECB President Jean-Claude Trichet said he opposed any involvement of the private sector that was not "purely voluntary." But on Friday his deputy Vitor Constancio said there might be room for compromise, explaining that Trichet was keen to avoid any approach that would trigger a so-called "credit event," which would have serious consequences for investors. Some observers argue that the ECB is opposed to a restructuring because it itself now holds so much Greek debt.
Spiegel Online
