German Chancellor Angela Merkel gave her support to Greek Prime Minister Antonis Samaras, despite criticisms and calls in Europe to remove the country from the euro zone. Chancellor Merkel said she is convinced the economic problems of Greece will be resolved under the leadership of Prime Minister Samaras.
During the leaders’ joint press conference, Chancellor Merkel said, “I want Greece to stay in the euro zone and that’s what I’m working for. This is a difficult path and Germany has always said it will support Greece on this path.” Merkel remained firm on her stand that Greece needs to stick to the conditions of the bailout, despite the request of Samaras for more time to recover. She emphasized, “Fulfilling commitments and expectations will lead to a return of confidence in the euro zone.”
Prime Minister Samaras said his government is not asking for more money, but “breaths of air in this dive we are taking,” Merkel did not give any direct response to the Samaras pleadings.
Jim O’Shaughnessy: Fear Signals Created By The Reptilian Brain
ValueWalk's Raul Panganiban interviews Jim O’Shaughnessy, Chairman, Co-chief Investment Officer, and Portfolio Manager at O’Shaughnessy Asset Management. In this part, Jim discusses the fear and emotional signals created by the reptilian brain. Q1 2020 hedge fund letters, conferences and more That's very cool. For the factor to try to seek the reason why it works, Read More
A report from the Wall Street Journal cited comments from economists, that Samaras requests to extend the timeframe to fulfill bailout plan until 2016 would require more funds from international lenders, thus increasing the need for more bailout money to fund the budget of the Greece for the additional time.
Chancellor Merkel is waiting for the report from the representatives of Greek creditors in the European Commission, European Central Bank(ECB), and the International Monetary Fund (IMF), also known as the “Troika”, regarding the progress of Greece’s economic reforms and spending cuts.
During the meeting of the two leaders, Samaras told Merkel the Troika will surely recognized his governments’ efforts in reducing the country’s deficits and economic modernization initiatives.
According to Merkel, Germany has more than two years guaranteed programs, support, and money for Greece, however its expectations did not happen, which resulted to an increased impatience and disappointment from European taxpayers.
According to analysts, Samaras needs to prove to the leaders in Europe that he is committed in reforming the government to regain their confidence particularly Germany.