BERLIN (AP) — German Chancellor Angela Merkel is warning that a second debt writedown for Greece could undo much of the recent work done to stabilize the euro area.
Merkel’s comments Friday came a day after her finance minister visited Athens and told a Greek audience that it’s not in the country’s interests to seek a second write-off, or “haircut,” following last year’s debt restructuring with private-sector bondholders.
Merkel pointed to the possible consequences of another writedown in the 17-country eurozone and the danger that others might seek a similar deal. Portugal, Ireland and Cyprus have also received bailouts.
She said another debt relief deal “could lead to such massive uncertainty among all investors in the eurozone that everything we have done in recent years would again be in question.”