Wednesday November 26, 2014 Search
Weather | Athens
13o C
8o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Cyprus presents systemic threat to eurozone, Merkel ally says

German lawmakers recognize that a collapse in Cyprus’s banking industry would pose a threat to euro-area stability, an ally of Chancellor Angela Merkel said, suggesting that Germany won’t block a bailout package.

The comments by Norbert Barthle, a lawmaker and budget spokesman for Merkel’s Christian Democratic Union-led bloc, are the first by a senior German government official to acknowledge the systemic risk to the 17-nation euro region posed by Cyprus. Germany’s Finance Ministry has said rescue-fund rules stipulate that a country must pose a risk to the stability of the entire region before it can be eligible for bailout loans.

“From everything that I know, I would expect that one will come to the conclusion that it’s relevant,” Barthle told reporters Thursday in Berlin. “One has to take a very close look at the issue of contagion, especially since the Cypriot banks are very closely tied to the Greek banks.”

German and European officials have been squabbling over whether the Mediterranean island nation represents a critical risk to the euro area in its fourth year of a debt crisis. Euro finance ministers have yet to reach an agreement on the bloc’s latest bailout package since negotiations began in July.

The question of Cyprus’s relevance “must be asked,” Finance Ministry spokesman Martin Kotthaus said this week, after Der Spiegel reported that European Central Bank President Mario Draghi had pressed German Finance Minister Wolfgang Schaeuble into recognizing that the country posed a risk.

Barthle said the issue of Cyprus’s threat to the euro will be resolved when legislators see that the country is systemically relevant to the currency. Open questions remain on Cyprus’s debt sustainability, Russia’s involvement, harmonizing its tax system, privatizing state assets and accusations of money laundering, he said.

On the laundering allegations, “Cyprus has to make substantial progress in countering these accusations,” Barthle said. “This will have to be assessed very closely, otherwise I can’t imagine that there will be an approval of any package.”

An extension of Russian loans to Cyprus will offer European officials “a bit of time” to agree on a bailout package, though that timetable won’t stretch until German parliamentary elections in September, Barthle said. [Bloomberg]

ekathimerini.com , Thursday Jan 31, 2013 (17:07)  
Hundreds of migrants on crippled ship off Crete
Policemen suspected of working at Piraeus bar where shooting took place
Ankara proposes private firm to seek natural gas off Cyprus
Further tension builds up at universities
Debtors snap up offer for easier settlements
The government’s plan for the settlement debts to the state is paying off as Greeks are signing up in numbers for the more favorable payment scheme. In less than 24 hours since the opening o...
Belgium gas firm said to be eyeing DESFA
Belgian natural gas network operator Fluxys is said to be eyeing the Greek gas grid, after signing an agreement on Monday with its Greek counterpart (DESFA) for the drafting of a study on th...
Inside Business
SOCCER
Atletico eyes last 16 berth against Olympiakos
Greek champion Olympiakos faces a tough task if it is to prevent last season's beaten finalist Atletico Madrid sealing its passage into the last 16 of the Champions League at the Vicente Cal...
SOCCER
EPO ends soccer suspension, Super League resumes
Soccer action will resume this weekend after the Super League convened on Monday, elected a new president and alternate president and sent a letter to the soccer federation that assures it t...
Inside Sports
COMMENTARY
Beware of the fallen idols
Akis Tsochatzopoulos, a legendary figure of the Greek socialist movement, a man who came very close to taking over the party that governed the country for half of the time following the fall...
EDITORIAL
The hard truth
The coalition government must tell the truth to the Greek people, even if this entails admitting to mistakes made over the last few months. The country’s citizens are fully aware of how cruc...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Hundreds of migrants on crippled ship off Crete
2. Atletico eyes last 16 berth against Olympiakos
3. Debtors snap up offer for easier settlements
4. Belgium gas firm said to be eyeing DESFA
5. OLP approval paves way for investment in Piraeus
6. Airport tender exceeds expectations
more news
Today
This Week
1. Anastasiades to undergo heart surgery in the US on Dec 4
2. Cargo vessel carrying hundreds of migrants adrift southeast of Crete
3. Trade deficit widens by 8.7 percent during Jan-Sept period, says ELSTAT report
4. Two police officers among 9 arrested for drug trafficking
5. Fraport, Copelouzos offer highest bid for Greek regional airports
6. Stop Mediterranean becoming vast migrant cemetery, Pope tells Europe
Today
This Week
1. Double quake on Atalanti fault line rattles Greek capital [Update]
2. Biden heads to Istanbul amid tension over Cyprus EEZ violation
3. Give Greece a chance
4. Every age has its collaborators
5. Carlsberg takes control of Greek brewer Olympic Brewery [Update]
6. Scientists expand excavation of ancient Amphipolis
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.