Advertisement

  1. National

Merkel rejects Greek government's bid for further debt relief

German Chancellor Angela Merkel ruled out the possibility of offering Greece more debt relief on Saturday and stated that she doesn't see "a further debt haircut" in the debt-ridden country's future.

The decision came as a blow to the new Greek government as they had promised voters that they would put anti-austerity measures in place and demand neighbouring countries to write off part of its 320 billion euro ($360 billion) debt.

View all 43 updates ›
  1. James Mates

Syriza facing a fundamental Eurozone contradiction

There is a fundamental contradiction here, Syriza want to effectively break the Eurozone's rules by not repaying debt, by being let off various taxing, spending and budget deficit strictures as laid down by Berlin.

But at the same time they, and 75% of Greek voters, do not want to leave the Euro.

They believe they can square that circle by mediation but the German central bank is already saying that is not going to happen.

The problem for the Eurozone is that Spain, Italy, France all have anti-austerity parties as well. If they let the Greeks go their own way, everyone else will want to do the same.

More on this story