Germany Digs In on Greek Debt Extensions Rejected by Trichet
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Germany stepped up demands that investors share the cost of a second Greek rescue after Jean-Claude Trichet rejected direct involvement by the European Central Bank.
“We have to insist on the participation of the private sector,” German Finance Minister Wolfgang Schaeuble told lawmakers in Berlin today, ignoring warnings from credit-rating firms that his proposal to extend Greek debt maturities by seven years would be deemed a default. A working group set up this week is charged with indentifying “a good solution for the involvement of the private sector that can and has to be supported by the European Central Bank,” he said.