Debt crisis
July 17, 2011
Chancellor Angela Merkel on Sunday gave a lengthy interview to German public broadcaster ARD, during which she called for the creation of a European ratings agency, amid growing discontent over the downgrading of some EU economies.
"The Chinese now have a ratings agency," the chancellor said, adding the organization should be created by the "European economy" and not by the individual member states.
The European Commission has recently criticized the world's three leading credit ratings agencies, questioning the timing of their debt downgrades.
On Wednesday, German Finance Minister Wolfgang Schäuble said he wanted to break the power of ratings agencies after two of the main US agencies downgraded the ratings of vulnerable eurozone members Portugal and Ireland to "junk" status.
Euro is safe, Merkel says
Merkel also voiced her concern over the possible rescheduling of Greek debt, which she said would have "the negative effect that the country might not work hard" for their reorganization efforts, However, she admitted that because of the country's high debt, conditions were "very, very difficult," and a restructuring couldn't be ruled out.
With regard to the euro-summit on Thursday, Merkel reiterated that private creditors should help shoulder the burden.
The chancellor also attempted to soothe fears that the financial woes plaguing the eurozone would endanger the common currency, emphasizing that the euro was safe and "part of the European identity."
Author: Sarah Harman (AFP, dpad)
Editor: Andreas Illmer