Wednesday 10 October 2012

Merkel gets a hostile reception on Greek visit

Greece's Prime Minister Antonis Samaras, right, and Germany's Chancellor Angela Merkel speak before their meeting at the Maximos mansion in Athens, Tuesday, Oct. 9, 2012. Amid draconian security measures and a mass protest, German Chancellor Angela Merkel arrived Tuesday for her first visit to Greece since the eurozone crisis began there three years ago. Her five-hour stop is seen by the Greek government as a historic boost for the country's future in Europe, but by protesters as a harbinger of more austerity and hardship. (AP Photo/Thanassis Stavrakis, Pool)

Greece's Prime Minister Antonis Samaras, right, and Germany's Chancellor Angela Merkel speak before their meeting at the Maximos mansion in Athens, Tuesday, Oct. 9, 2012. Amid draconian security measures and a mass protest, German Chancellor Angela Merkel arrived Tuesday for her first visit to Greece since the eurozone crisis began there three years ago. Her five-hour stop is seen by the Greek government as a historic boost for the country's future in Europe, but by protesters as a harbinger of more austerity and hardship. (AP Photo/Thanassis Stavrakis, Pool)

A protester is arrested during clashes in front of the parliament in Athens on Tuesday Oct. 9, 2012 as German Chancellor Angela Merkel makes her first visit to Greece since the eurozone crisis began here three years ago. Her five-hour stop is seen by the government as a historic boost for the country's future in Europe's shared currency, but by protesters as a harbinger of more austerity and hardship. More than 7,000 police will be on hand, cordoning off parks and other sections of central Athens, to keep demonstrators away from the German leader who is due to arrive today in the Greek capital for talks with conservative Prime Minister Antonis Samaras. (AP Photo/Nikolas Giakoumidis)

Demonstrator holds an anti-Merkel banner prior to a protest in front of the Greek Parliament in Athens on Tuesday Oct. 9, 2012. German Chancellor Angela Merkel makes her first visit to Greece since the eurozone crisis began three years ago. Her five-hour stop is seen by the government as a historic boost for the country's future in Europe's shared currency, but by protesters as a harbinger of more austerity and hardship. More than 7,000 police will be on hand, cordoning off parks and other sections of central Athens, to keep demonstrators away from the German leader who is due to arrive Tuesday in the Greek capital for talks with conservative Prime Minister Antonis Samaras. (AP Photo/Lefteris Pitarakis)

Riot police arrest a demonstrator during clashes in front of the parliament in Athens, Tuesday, Oct. 9, 2012. German Chancellor Angela Merkel got a hostile reception from ordinary Greeks Tuesday when she flew into Athens on her first visit to the country since its debt crisis erupted three years ago. (AP Photo/Nikolas Giakoumidis)

Protesters are chased by riot police during clashes in front of the parliament in Athens, Tuesday Oct. 9, 2012. German Chancellor Angela Merkel got a hostile reception from ordinary Greeks Tuesday when she flew into Athens on her first visit to the country since its debt crisis erupted three years ago. (AP Photo/Nikolas Giakoumidis)

(AP) ? German Chancellor Angela Merkel got a hostile reception from many ordinary Greeks Tuesday when she flew into Athens on her first visit to the country since its debt crisis erupted three years ago.

But she praised the current Greek government for covering "much of the ground" required for recovery.

"I hope and wish that Greece remains a member of the eurozone," Merkel said. "As partners, we are working hard to achieve that."

Her visit triggered protests attended by some 50,000 demonstrators in Athens. The rallies were mostly peaceful, but police briefly clashed with several dozen demonstrators and detained nearly 200 people throughout the day.

As Europe's largest contributor to the bailout fund that has rescued Greece from bankruptcy, Germany is viewed by many Greeks as the primary enforcer of the austerity measures the Greek government enacted in exchange for emergency aid.

Merkel, who stopped in Athens for five hours, said the coalition government led by Prime Minister Antonis Samaras still had to push through more key cost-cutting reforms.

"Much of the ground has been covered ... There is daily progress," Merkel said after talks with Samaras. "This is an effort that should be seen through because otherwise it would make the circumstances even more dramatic later on."

Although the German leader damped expectations in Athens of a stronger message of public support for Greece, Samaras said Merkel's visit had ended "the country's international isolation."

Greece has depended on bailouts from Europe and the International Monetary Fund since May 2010. To get the loans, it has implemented a series of deep budget cuts and tax hikes, while increasing retirement ages and facilitating private sector layoffs.

However, Athens must pass further austerity measures worth ?13.5 billion ($17.5 billion) over the next two years to qualify for its next rescue loan payment ? without which the government will run out of cash next month.

Enduring austerity is set to extend Greece's recession to a sixth year in 2013 and push the rate of unemployment up to nearly 25 percent, according to government estimates.

"Greece is determined to carry out its commitment and overcome the crisis," Samaras said. "At this moment, the country is bleeding but is determined to remain in the euro ...We are not asking for more money or favors ? but only a chance to stand on its feet."

Merkel's stop in Athens was welcomed by the Greek government as a much-needed boost for the country's future in Europe ? but protesters viewed it as a harbinger of further austerity and hardship.

Dozens of youths broke away from the peaceful rally and threw rocks and flares at riot police, who responded with pepper spray and stun grenades, in clashes that were relatively minor.

More than 7,000 police had cordoned off parks and other sections of city to keep demonstrators away from the German leader.

As a helicopter buzzed overhead, thousands of protesters, chanting "History is written by the disobedient" gathered in front of Greek parliament. One group of demonstrators burned a Swastika and threw it onto a police barrier, while a group of special forces reservists appeared in uniform and chanted "Merkel out of Greece" in time to their march.

"I have no doubt that (Merkel) has good intentions, and wants to help, but that won't solve Europe's problem," retired teacher Irini Kourdaki said. "Europe is polarized and ... we need a major change in policy."

Merkel's visit followed a subtle shift in political rhetoric in Germany toward the Greeks, with the chancellor repeating her desire to keep Greece in the eurozone and urging political allies to refrain from public criticism of the Athens government. It appeared that a goal of the trip was to affirm her support for Samaras as Germany's best bet to see through painful structural reforms which the Germans believe are necessary if Greece is to regain economic stability.

Before the visit, Merkel's spokesman Steffen Seibert said the chancellor would express her support to the Greek government in the "very demanding reform course" and praised the country's progress to date.

"She knows that the country faces very demanding and painful tasks," Seibert said. "What has already happened has our support; what still has to happen, we will address very clearly."

That was a marked difference with the tone of statements made last summer, when some Merkel allies were openly dismissive of the Greeks for alleged economic mismanagement, with some politicians even suggesting that Greece's departure from the common currency would not produce the economic shock that many fear.

The visit was also likely aimed at preventing the opposition Social Democrats from criticizing her for allegedly failing to display strong personal leadership in the euro crisis in the run-up to national elections expected in about a year.

Debt monitors from the EU, IMF and European Central Bank, known as the "troika", will deliver a report within coming weeks on whether Greece should receive its next bailout payment, without which it will go bankrupt.

"It's taking longer than was originally thought," Merkel said. But it's better to deal with problems in detail that to try and address them quickly."

A senior Greek government official said rescue creditors had given the country a list of around 90 structural reforms to be approved immediately so that the vital next loan installment could be paid sometime next month.

The official asked not to be named, since talks between Merkel and Samaras were ongoing.

___

AP writers in Berlin and AP television and photography staff and in Athens contributed.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2012-10-09-Greece-Financial%20Crisis-Merkel/id-bca16612fb0f4c48a8737e637a027134

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