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EU bogged down in euro crisis

Published time: October 25, 2011 18:45
Edited time: October 25, 2011 22:45

AFP Photo / Louisa Gouliamaki

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The EU's turbulent quest to pull the Eurozone out of its debt spiral has hit another snag. Several key meetings aimed at forming a plan have been cancelled, and doubt is growing that EU leaders can overcome their differences.

­A report on Greece presented to EU leaders on Saturday painted a very grim picture, saying Athens might need hundreds of billions more in bailout cash. But Michael Fuchs, deputy chairman of the German Parliament, says he is sure the Greek problem can be solved.

“There is a lot of money going into Greece, but I think at the end of the day we will find a suitable solution,” he told RT.

If the European Financial Stability Fund is expanded, it will put even more pressure on German taxpayers, and in turn more political pressure on Chancellor Angela Merkel. But Fuchs vowed that the fund would not be enlarged.

“The German share of the total fund of 400 billion is 211 billion, and it will not be a single eurocent more than that,” he declared. “But we will have a possibility to look into the EFSF and make it stronger.”

Despite growing disagreements between Merkel and French President Nicolas Sarkozy over how to handle the crisis, and despite the postponement of key finance meetings that had been scheduled for Wednesday, Fuchs says the Eurozone will still get the solution it was promised.

“I am quite positive that we will find a solution,” he stated. “Most of the difficulties between Merkel and Sarcozy are solved. Angela Merkel mentioned it today that there will be no ECP in the picture. But the EFSF has all the possibilities available, which is very important.”

A Greek collapse would have severe financial and political consequences, especially for Germany. But, Fuchs noted, Greece’s economic future with the euro is up to the Greeks.

“It is said in the European Constitution that a country cannot be forced to step out of the Eurozone,” he said. “That is something the Greek government has to decide.”

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