Tuesday September 2, 2014 Search
Weather | Athens
29o C
23o 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)  
Trial over 2013 murder of pawn merchant starts in Athens
Rain and storms with hail expected in many parts of Greece
Education minister calls for probe into predecessor´s reform plan
Anti-racism bill goes back to Parliament
New committee formed to assess progress of deregulation in closed-shop professions
A new committee consisting of 40 officials from the relevant ministries has been formed by Finance Minister Gikas Hardouvelis to assess the progress of liberalization measures introduced sin...
Tourism targets rise ever higher
The latest data have allowed the Hellenic Association of Tourism Enterprises (SETE) to raise its target for tourism arrivals and revenues this year higher still. During a meeting with main o...
Inside Business
BASKETBALL
Greek hoopsters go top of their group in World Cup
Greece has qualified to the second round of the FIBA World Cup after going top of its group of six through a third win in as many group games in Spain. On Monday it beat Puerto Rico 90-79 in...
SOCCER
Fulham striker Mitroglou set to re-join Olympiakos
Greek champions Olympiakos Piraeus are set to re-sign Kostas Mitroglou on loan from English second tier club Fulham after the striker arrived in Athens for talks on Sunday. An Olympiakos spo...
Inside Sports
COMMENTARY
Politicized archaeology
Let us suppose that archaeologists discover that the tomb uncovered in Amphipolis was not the resting place of Roxana or Nearchos, but of Alexander the Great. Let us assume, that is, that ar...
EDITORIAL
Moderating expectations
Politics is, to a great extent, all about managing expectations, and anyone who raises that bar too high or too fast is at serious risk of disappointing and losing the people’s favor. In a c...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Trial over 2013 murder of pawn merchant starts in Athens
2. New committee formed to assess progress of deregulation in closed-shop professions
3. Rain and storms with hail expected in many parts of Greece
4. Greek hoopsters go top of their group in World Cup
5. Tourism targets rise ever higher
6. Horse race betting hurdle removed for OPAP
more news
Today
This Week
1. Politicized archaeology
2. Rain and storms with hail expected in many parts of Greece
3. Moderating expectations
4. New committee formed to assess progress of deregulation in closed-shop professions
5. Trial over 2013 murder of pawn merchant starts in Athens
6. Excavation work at Amphipolis reveals section of marble mosaic floor
Today
This Week
1. Thessaloniki mayor Boutaris sworn in wearing yellow star amid Golden Dawn protests
2. The battle against progress
3. Attack on gay couple in Athens leaves one man needing surgery
4. Strong undersea quake occurs off island of Milos, felt in Athens
5. Greek quest for debt relief faces hurdles in Paris
6. Hardouvelis, ECB executive discuss bank program, stress tests
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.