Germany concedes on Greek debt deal

Article reports that Germany backed down on the 17 June 2011 from its confrontation with the European Central Bank over bondholders’ participation in a new Greek rescue programme, throwing its weight behind a voluntary rollover of Greek debt rather than a full-scale debt exchange with extended maturities.

The deal, announced in Berlin by Angela Merkel, German chancellor, and French president Nicolas Sarkozy on the 17 June 2011, lifted global markets on hopes that European leaders would be able to reach early agreement on a financial rescue package.

EUObserver, 17.6.11: Merkel, Sarkozy back 'voluntary' private-sector involvement in Greek rescue http://euobserver.com/9/32507

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: Greece in turmoil amid coalition talks / Greece replaces finance minister http://www.europeansources.info/record/greece-in-turmoil-amid-coalition-talks-greece-replaces-finance-minister/

ESO: Background information: Proposal raises Greek downgrade fears / New Greek bank plan ‘set to cost €20bn’ http://www.europeansources.info/record/proposal-raises-greek-downgrade-fears-new-greek-bank-plan-set-to-cost-e20bn/

BBC News, 18.6.11: Greece: Merkel urges 'substantial' input from banks http://www.bbc.co.uk/news/business-13822394

Deutsche Welle, 17.6.11: Merkel and Sarkozy united in support for Greece http://www.dw-world.de/dw/article/0,,15164986,00.html

France24, 18.6.11: Sarkozy and Merkel urge rapid solution to Greek crisis http://www.france24.com/en/20110617-imf-france-germany-sarkozy-and-merkel-call-for-rapid-solution-to-greek-crisis

Spiegel Online International, 17.6.11: Germany and France Move Closer on Euro Issue http://www.spiegel.de/international/europe/0,1518,769069,00.html

Kathimerini, 17.6.11: Barroso looks to Sunday meeting http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_25478_17/06/2011_395034

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