May 17, 2010
A trillion-dollar package to shore up ailing eurozone economies merely buys time until the deficits of certain members of the 16-member zone are cleaned up, German Chancellor Angela Merkel said Sunday.
Speaking at a conference of the Confederation of German Trade Unions, Merkel said that recent speculation against the euro “is only possible because of huge differences in the economic strengths and debt levels of member states.”
With the rescue package, “we have done nothing more than to buy time until we have brought order to these competitive differences and to the budget deficits of individual euro countries,” she said.
The giant fund of loan guarantees, for which Germany will have to make available up to around 150 billion euros (186 billion dollars), was agreed in emergency talks in Brussels last Sunday.