Merkel associate: No extension, no solution for Greece

Michael Fuchs underlined today that Greece must accept an extension of the existing program before any other agreement can be reached

Michael Fuchs, Vice President of Christian Democratic party and a close associate of German Chancellor Merkel, reiterated that the new Greek government has to accept an extension of the current bailout program if a solution is to be found with regard to its financing needs after Feb. 28.

In an interview with the Agora newspaper, Fuchs reiterated his party’s position, namely, that Greece must accept that it has an obligation to observe agreed reforms detailed in at least three previous “memorandums”, the Latinized version of the bailout agreements. “Only after such a commitment, adjustments can be discussed,” the German Deputy underlined.

Fuchs also rejected Greek Finance Minister Yanis Varoufakis’ proposal for a bond swap, offering the following justification: “The European Central Bank cannot participate in a bond swap for legal reasons and the International Monetary Fund would never agree to such a proposal, nor would any European government.”