Photo: (Photo by Andreas Rentz/Getty Images)
First Merkel endorses the ECB’s action to buy unlimited amounts of sovereign debt.Now this.
German Chancellor Angela Merkel had reached the view that Greece must not be allowed to leave the euro zone in the autumn and is prepared to grant Athens more flexibility over its bailout payments, der Spiegel magazine wrote on Saturday.
But Merkel sees the necessity of avoiding a third aid program for Athens given the difficulty of getting it passed in the German parliament amid growing bailout fatigue, der Spiegel said, without naming its sources.
It’s worth noting that Merkel is getting flexible at a time when the German export workhorse is slowing down, thanks to the depression in the countries surrounding it.
Furthermore, Merkel’s re-election is in the next year.
The last thing she needs is for a country to leave the Eurozone (opening up the Pandora’s box of more countries leaving the Eurozone) and a further collapse of the economy.
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