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Merkel Government Allies May Block Greece Package, Spiegel Says

Chancellor Angela Merkel’s Christian Social Union ally may block a second aid package for Greece in Germany’s lower house of parliament on Feb. 27 should Greece fail to honor its debt reduction commitments, party chairman Horst Seehofer told Spiegel magazine.

The CSU, the sister party of Merkel’s Christian Democratic Union, won’t support measures that threaten Germany’s top credit rating, Seehofer also said. Any aid disbursement to Greece must be accompanied by “concrete reform steps” on the part of the Greek government, Seehofer told the magazine.

Greece should exit the euro if it’s not willing or able to meet its spending reduction promises, he said.

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