|Merkel emphasized that the euro |
was a stable currency
In a TV interview, German Chancellor Angela Merkel voiced her skepticsm on restructuring Greek debt and called for the creation of a European ratings agency, in the wake of the downgrading of some eurozone members.
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
EU Justice Commissioner Viviane Reding
says rating agencies are too dominant
Moody's may cut Portugal on growth, debt concerns (Dec 21, 2010)
Moody's slashes Ireland to Baa1, warns more may be ahead (Dec 17, 2010)
Moody's may cut Greek credit rating, puts on review (Dec 16, 2010)
Moody's warns it may downgrade Spain's debt (Dec 15, 2010)
Moody’s Threatens Credit Downgrades for Belgium, U.S. (Dec 14, 2010)