Europe
29.06.2012
Brussels (dpa) - German Chancellor Angela Merkel on Friday insisted that her country had not compromised on its doctrine of making solidarity conditional, hours after Italy and Spain won an acrimonious summit fight as they demanded relief for their sky-high borrowing costs.
"We remain entirely within our prior formula: give and take, conditionality and control," Merkel told reporters in Brussels before heading into a second day of meetings with EU counterparts.
"And, insofar, I think that we have done something important, but have also stayed true to our philosophy - no benefit without a trade-off," she added.
The chancellor had reportedly been wary of bowing to Italian and Spanish demands ahead of a key parliamentary vote in Berlin later Friday on the ratification of a new bailout fund and budget discipline rules for the eurozone.
Any summit decision proving unpopular in Germany could jeopardize the parliament‘s approval.
Eurozone leaders eventually agreed to change the terms of an upcoming Spanish bank rescue - recapitalizing banks without funneling the money through the state - and allow countries like Italy to tap into eurozone funds to reduce their borrowing costs. But the measures were not immediately operational and came with strings attached.
"Without memorandums of understanding, member states and banks in the EU will not be helped. So that balance between help and financial assistance, responsibility and control today is achieved," Lithuanian President Dalia Grybauskaite noted.
The deal materialized only after Rome and Madrid blocked a European Union decision on a 120-billion-euro (161-billion-dollar) growth plan.
"This has nothing to do with blackmail, it has nothing to do with vanquisher or vanquished, winner or loser. We are making joint efforts here," said Luxembourg Prime Minister Jean-Claude Juncker, who chairs the Eurogroup panel of eurozone finance ministers.
"We moved together. The best way to make others move is to move yourself," French President Francois Hollande added. "We took an important step yesterday and overnight."
Economic issues were expected to take a back seat on the second day of the summit, although one matter still to be resolved remained whether Juncker would continue to serve as the influential leader of the Eurogroup.
Earlier this year, Juncker had announced his intention to quit the job he has occupied since 2005. But squabbles over his succession have made it "likely" that he would be reappointed temporarily, diplomats said Thursday. dpa alv amh ncs Author: Alexandra Mayer-Hohdahl europe on line
"We remain entirely within our prior formula: give and take, conditionality and control," Merkel told reporters in Brussels before heading into a second day of meetings with EU counterparts.
"And, insofar, I think that we have done something important, but have also stayed true to our philosophy - no benefit without a trade-off," she added.
The chancellor had reportedly been wary of bowing to Italian and Spanish demands ahead of a key parliamentary vote in Berlin later Friday on the ratification of a new bailout fund and budget discipline rules for the eurozone.
Any summit decision proving unpopular in Germany could jeopardize the parliament‘s approval.
Eurozone leaders eventually agreed to change the terms of an upcoming Spanish bank rescue - recapitalizing banks without funneling the money through the state - and allow countries like Italy to tap into eurozone funds to reduce their borrowing costs. But the measures were not immediately operational and came with strings attached.
"Without memorandums of understanding, member states and banks in the EU will not be helped. So that balance between help and financial assistance, responsibility and control today is achieved," Lithuanian President Dalia Grybauskaite noted.
The deal materialized only after Rome and Madrid blocked a European Union decision on a 120-billion-euro (161-billion-dollar) growth plan.
"This has nothing to do with blackmail, it has nothing to do with vanquisher or vanquished, winner or loser. We are making joint efforts here," said Luxembourg Prime Minister Jean-Claude Juncker, who chairs the Eurogroup panel of eurozone finance ministers.
"We moved together. The best way to make others move is to move yourself," French President Francois Hollande added. "We took an important step yesterday and overnight."
Economic issues were expected to take a back seat on the second day of the summit, although one matter still to be resolved remained whether Juncker would continue to serve as the influential leader of the Eurogroup.
Earlier this year, Juncker had announced his intention to quit the job he has occupied since 2005. But squabbles over his succession have made it "likely" that he would be reappointed temporarily, diplomats said Thursday. dpa alv amh ncs Author: Alexandra Mayer-Hohdahl europe on line
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