Merkel Ally Says ‘Forget About’ Greek Sovereign Debt Writedown

A top ally of Chancellor Angela Merkel said European policy makers should “forget about” another sovereign debt writedown for Greece, warning that other countries would line up to seek a similar solution.

Volker Kauder, the parliamentary caucus leader of Merkel’s Christian Democratic-led bloc, reiterated the government’s position that it opposes a Greek writedown. Indebted euro-area nations should focus instead on reforms to boost their competitiveness and overcome the debt crisis.