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

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Series Details 10.6.11
Publication Date 10/06/2011
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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.

Related Links
Spiegel Online International, 10.6.11: Politicians 'Are Lying Through Their Teeth' on Greek Aid,1518,767919,00.html
Deutsche Welle, 10.6.11: German finance minister urges private investment in new Greece loans,,15145187,00.html
ESO: Background information: Greece Needs a New Bailout
ESO: Background information: Germany fears 'full-blown bankruptcy inside the eurozone'
ESO: Background information: Lenders close to new rescue deal for Greece
ESO: Background information: ECB firefight leaves it exposed to Greek shock
Kathimerini, 9.6.11: ECB in high-stakes maneuvers
EUObserver, 10.6.11: ECB: non-voluntary Greek restructuring would be 'enormous mistake'
EUObserver, 14.6.11: Ministers attempt to defuse ECB-Berlin row

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