German Chancellor Angela Merkel said European Union leaders may be ready to extend Greece’s bailout programme as part of a broader package to shore up faith in the euro, falling short of Greek calls to ease its lending terms.
Merkel, speaking to reporters in Berlin late yesterday after talks with Greek Prime Minister George Papandreou, said that any extension would have to be a part of the comprehensive package to fight the debt crisis being negotiated by the end of March. No decision has yet been made on such action, she said.
“There certainly is a discussion about whether to consider extending the running time of the Greek programme,” Merkel said, noting that last year’s aid plan for Greece was limited to three years while Ireland’s bailout package, agreed last November, runs for seven years. “It’s one point that’s on the table.”
Merkel’s comments, made in response to a question about lowering interest rates for bailouts, fail to address the core demands of Greece and Ireland, the second euro-area country to get aid. The EU said in November that Greece would get an extra four-and-a-half years to repay emergency loans to match the seven-year term for the Ireland’s rescue.
