Trichet hits back at Germany as Greek dispute continues
Tension between the European Central Bank and the German government has intensified as Jean-Claude Trichet hit back at the German finance minister's claims Greek government bondholders should contribute to a new aid programme.
Tension between the European Central Bank and the German government has intensified as Jean-Claude Trichet hit back at the German finance minister’s claims Greek government bondholders should contribute to a new aid programme.
Trichet instead continues to urge investments from foreigners in order to avert a collapse of the Greek banking system, and said forcing contributions from Greek bondholders is not a possibility.
The comments are in response to Germany’s finance minister, Wolfgang Schäuble, who urged Greece to extend the maturity of its debt by seven years in order to avoid default.
In an open letter to European authorities he said: “Any additional financial support for Greece has to involve a fair burden sharing between taxpayers and private investors”.
The ECB have not excluded a voluntary debt rollover, in which maturing securities were replaced with new bonds, but the preferred package involves backing from private sector and foreign investment.
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