Germany and France on Friday cleared the way for a second
multi-billion euro rescue package for debt-laden Greece by reaching a compromise in their dispute over involving private creditors to share the costs of the planned bailout.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said after a meeting in the chancellery in Berlin that they have agreed to involve private creditors in a new
financial rescue on a voluntary basis.
Nearly two weeks ago, differences had erupted between Europe's two largest economies over the issue.
Chancellor Merkel on Friday said her country was now prepared to drop its demand that banks, investment funds and insurances should be forced to share the burden of rescuing their cash-strapped euro zone partner, which received a 110 billion euro ($159 billion) bailout from the EU and International Monetary Fund (IMF) a year ago.
Heavily-indebted Greece affecting global economic recovery "We agree to an involvement of private creditors on a voluntary basis", Merkel told reporters at a joint news conference with French President Nicholas Sarkozy.
She also indicated that an agreement among the 17 euro zone nations on the proposed rescue package - ranging between 90 billion euros and 120 billion euros - need not have to wait until September and the issue could be resolved even at the EU summit next week.
Media reports had earlier this week said Germany was seeking to delay a decision on a new rescue package until September to win the support for its proposal from all euro zone partners.
The terms and conditions of a new bailout must be worked out speedily by the European Commission together with the
European Central Bank (ECB) and the IMF, Merkel said today, adding "We want a solution as speedily as possible."
President Sarkozy said France and Germany had identical position and opinion as far as defending the euro is concerned.
He spoke of his agreement with Merkel as a major breakthrough, which is based on the principles speedy and voluntary handling, avoiding a credit default by Greece and complete agreement with the European Central Bank.
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