Trichet inflames Berlin dispute / Germany refuses to back down on Greece

Article reports that Jean-Claude Trichet, European Central Bank president, escalated his dispute with Germany over a fresh international bail-out for Greece on the 9 June 2011, after making clear he saw no scope for forcing a contribution from holders of Greek government bonds.

His comments were a riposte to Wolfgang Schäuble, Germany's finance minister, who had demanded a 'quantified and substantial contribution' by bondholders as a condition of German support for a new aid programme. They threatened to intensify already acrimonious negotiations over the composition of the package, which could be as big as €170bn between now and 2014, and was due to be agreed by the 24 June 2011.

Spiegel Online International, 10.6.11: Politicians 'Are Lying Through Their Teeth' on Greek Aid http://www.spiegel.de/international/europe/0,1518,767919,00.html

Deutsche Welle, 10.6.11: German finance minister urges private investment in new Greece loans http://www.dw-world.de/dw/article/0,,15145187,00.html

ESO: Background information: Greece Needs a New Bailout http://www.europeansources.info/record/greece-needs-a-new-bailout/

ESO: Background information: Germany fears 'full-blown bankruptcy inside the eurozone' http://www.europeansources.info/record/germany-fears-full-blown-bankruptcy-inside-the-eurozone/

ESO: Background information: Lenders close to new rescue deal for Greece http://www.europeansources.info/record/lenders-close-to-new-rescue-deal-for-greece/

ESO: Background information: ECB firefight leaves it exposed to Greek shock http://www.europeansources.info/record/ecb-firefight-leaves-it-exposed-to-greek-shock/

Kathimerini, 9.6.11: ECB in high-stakes maneuvers http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_10940_09/06/2011_394204

EUObserver, 10.6.11: ECB: non-voluntary Greek restructuring would be 'enormous mistake' http://euobserver.com/9/32471

EUObserver, 14.6.11: Ministers attempt to defuse ECB-Berlin row http://euobserver.com/9/32482

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