Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Germany says Greece can tackle budget problems alone

Published 12/09/2009, 08:23 AM
Updated 12/09/2009, 08:27 AM

* Germany says Greece must do more on budget woes

* Germany sees no reason why Greece can't tackle woes alone

* German cabinet didn't address Greek woes at Wednesday meet

(Adds detail, background)

BERLIN, Dec 9 (Reuters) - Greece must take additional steps to resolve its budgetary problems and there is no reason to doubt it can do so alone, a spokesman for the German Finance Ministry said on Wednesday.

Fitch Ratings cut Greece's debt to BBB+ on Tuesday with a negative outlook, the first time in 10 years a major ratings agency put Greece below an A grade, citing fiscal deterioration in the euro zone's weakest member.

"We support Greece on its path to budget consolidation," the ministry spokesman told a regular government news conference. "It is undisputed that Greece needs to take additional measures."

He noted that Greek Finance Minister George Papaconstantinou had said Greece could rely on its own strength.

"There is no reason to doubt that should be possible," the German ministry spokesman said, adding that he saw no need to address the question of whether the euro could reach a pain level at which European policymakers should meet to discuss it.

A German government spokesman added at the same news conference that the cabinet did not discuss Greece's public finances at a regular meeting earlier on Wednesday.

"But Greece's developments are of course being followed closely in the framework of the Eurogroup and Ecofin," he added.

Earlier on Wednesday, a senior academic adviser to the German Finance Ministry said Germany should resist any pressure to come to Greece's financial rescue because such a move would be "catastrophic". [ID:nGEE5B80Y7] (Reporting by Dave Graham and Paul Carrel; Editing by Ron Askew)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.