Greek PM arrives in Berlin for tough talks on reforms
Visit comes a day after Germany and France press Greece to push through painful reforms
CBC News
Posted: Aug 24, 2012 7:37 AM ET
Last Updated: Aug 24, 2012 7:25 AM ET
German Chancellor Angela Merkel welcomes Greek Prime Minister Antonis Samaras before talks in Berlin. (Tobias Schwarz/Reuters)
The new Greek prime minister's hopes of winning more time from creditors to implement reforms and spending cuts face a tough test as he arrives in Berlin to meet German Chancellor Angela Merkel.
Prime Minister Antonis Samaras visits the chancellery a day after Merkel and French President Francois Hollande, the leaders of the 17-nation eurozone's two biggest economic powers, pressed Greece to keep pushing through painful reforms and made no mention of his hopes for more leeway.
Samaras has been arguing in German and French media this week that his nation should have more time beyond the mid-2014 deadline to complete reforms that are a condition of it continuing to receive bailout loans. Without the help, Greece would be forced into a chaotic default on its debts and could be forced out of the eurozone.
But Germany's finance minister and the parliamentary caucus leader of Merkel's conservative bloc have agreed that credibility is key to overcoming the crisis and they would underline that in meetings with Samaras.
German minister skeptical on giving Greece more timeAhead of the Berlin talks, the Greek financial newspaper Naftemporiki said Samaras would seek to "restore our country's credibility" by arguing that Greece "has already made important steps towards fiscal stability and pushing through structural reforms".
The Athens newspaper Kathimerini said Samaras will succeed only if he maintains the support of his coalition partners and the Greek voters "and if our foreign partners agree to give Greece some breathing space".
But Athens has faltered in the speed and effectiveness of implementing the reforms, irritating its creditors, particularly Germany, which is the single largest contributor to its $300 billion bailout packages.
Greece's continued access to the bailout packages hinges on a favourable report next month from the so-called "troika" of the country's debt inspectors — the European Union, European Central Bank and the International Monetary Fund. If Greece is found to have failed on key economic reforms that are conditions of the bailout loan, vital funds could be halted.
"For me, it's important that we all stand by our commitments, and in particular await the (publication of) the troika report, to then see what the result is," Merkel said at the beginning of her meeting with Hollande. "But I will encourage Greece to follow the path of reform, which demands a lot of the Greek people."
Hollande said: "I want Greece to remain in the eurozone. That's my wish. That's our wish." But he added: "of course Greece must make the necessary efforts for this to happen."
Samaras meets Hollande in Paris on Saturday following his visit to Berlin.
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