Germany tempers market hopes of quick Greece deal

  • By Derek Gatopoulos And Nicholas Paphitis Associated Press
  • Tuesday, February 10, 2015 1:16pm
  • Business

ATHENS, Greece — Germany’s finance minister took a tough line against Greece over its bailout on Tuesday, tempering market hopes that a deal between Athens and its European creditors was in the works.

Wolfgang Schaeuble warned that negotiations with Greece, which wants to scrap its bailout program in favor of a new one with easier terms, would be dead if Athens pulls out of the current program.

He also said there was no chance of reaching a final deal at an emergency eurozone finance ministers’ meeting on Wednesday.

The blunt comments tempered hopes in financial markets, which had rallied on Tuesday on hopes of a negotiation breakthrough between lenders and the country’s new left-wing government.

“The public statements (by Greece) are more confusing than helpful,” Schaeuble said, speaking in Istanbul, Turkey after a meeting of Group of 20 finance ministers.

Greece’s new left-wing Prime Minister Alexis Tsipras won elections last month on a pledge to restructure massive bailout debts and renegotiate the terms of the deal. The current bailout program ends after Feb. 28, so both sides are under pressure to reach a deal.

Greece needs money to avoid bankruptcy, which could ultimately push it out of the eurozone and force it to adopt a new currency — a development that would cause massive financial damage for the country, at least in the short term. For the eurozone, an exit from the euro by Greece would bring huge market uncertainty.

Expectations that Greece could be granted extra time to hold new negotiations buoyed markets. Shares on the Athens Stock Exchange shot up nearly 8 percent, while the European Stoxx 600 index was up 0.5 percent.

“There are several reasons to be optimistic, starting with Europe’s track record over the past few years of finding a solution to the rolling eurozone crisis, often in the final moments,” said Garrick Hileman, an economic historian at the London School of Economics.

EU officials likewise suggested a final deal would not be reached at this week’s meetings.

EU Commission spokeswoman Mina Andreeva said Wednesday’s meetings will be a first opportunity for the ministers to hear from the new government. That meeting will be followed by an EU leaders’ summit on Thursday.

The eurozone finance ministers convene again next Monday in Brussels, hoping to find a breakthrough at that stage.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Black Press Media operates Sound Publishing, the largest community news organization in Washington State with dailies and community news outlets in Alaska.
Black Press Media concludes transition of ownership

Black Press Media, which operates Sound Publishing, completed its sale Monday (March 25), following the formerly announced corporate restructuring.

Maygen Hetherington, executive director of the Historic Downtown Snohomish Association, laughs during an interview in her office on Thursday, Feb. 15, 2024, in Snohomish, Washington. (Ryan Berry / The Herald)
Maygen Hetherington: tireless advocate for the city of Snohomish

Historic Downtown Snohomish Association receives the Opportunity Lives Here award from Economic Alliance.

FILE - Washington Secretary of State Steve Hobbs poses in front of photos of the 15 people who previously held the office on Nov. 22, 2021, after he was sworn in at the Capitol in Olympia, Wash. Hobbs faces several challengers as he runs for election to the office he was appointed to last fall. (AP Photo/Ted S. Warren, File)
Secretary of State Steve Hobbs: ‘I wanted to serve my country’

Hobbs, a former Lake Stevens senator, is the recipient of the Henry M. Jackson Award from Economic Alliance Snohomish County.

Mark Duffy poses for a photo in his office at the Mountain Pacific Bank headquarters on Wednesday, Feb. 14, 2024 in Everett, Washington. (Annie Barker / The Herald)
Mark Duffy: Building a hometown bank; giving kids an opportunity

Mountain Pacific Bank’s founder is the recipient of the Fluke Award from Economic Alliance Snohomish County.

Barb Tolbert poses for a photo at Silver Scoop Ice Cream on Thursday, Feb. 29, 2024 in Arlington, Washington. (Annie Barker / The Herald)
Barb Tolbert: Former mayor piloted Arlington out of economic brink

Tolbert won the Elson S. Floyd Award, honoring a leader who has “created lasting opportunities” for the underserved.

Photo provided by 
Economic Alliance
Economic Alliance presented one of the Washington Rising Stem Awards to Katie Larios, a senior at Mountlake Terrace High School.
Mountlake Terrace High School senior wins state STEM award

Katie Larios was honored at an Economic Alliance gathering: “A champion for other young women of color in STEM.”

The Westwood Rainier is one of the seven ships in the Westwood line. The ships serve ports in the Pacific Northwest and Northeast Asia. (Photo provided by Swire Shipping)
Westwood Shipping Lines, an Everett mainstay, has new name

The four green-hulled Westwood vessels will keep their names, but the ships will display the Swire Shipping flag.

A Keyport ship docked at Lake Union in Seattle in June 2018. The ship spends most of the year in Alaska harvesting Golden King crab in the Bering Sea. During the summer it ties up for maintenance and repairs at Lake Union. (Keyport LLC)
In crabbers’ turbulent moment, Edmonds seafood processor ‘saved our season’

When a processing plant in Alaska closed, Edmonds-based business Keyport stepped up to solve a “no-win situation.”

Angela Harris, Executive Director of the Port of Edmonds, stands at the port’s marina on Wednesday, Jan. 24, 2024, in Edmonds, Washington. (Ryan Berry / The Herald)
Leadership, love for the Port of Edmonds got exec the job

Shoring up an aging seawall is the first order of business for Angela Harris, the first woman to lead the Edmonds port.

The Cascade Warbirds fly over Naval Station Everett. (Sue Misao / The Herald file)
Bothell High School senior awarded $2,500 to keep on flying

Cascade Warbirds scholarship helps students 16-21 continue flight training and earn a private pilot’s certificate.

Rachel Gardner, the owner of Musicology Co., a new music boutique record store on Thursday, Jan. 18, 2024 in Edmonds, Washington. Musicology Co. will open in February, selling used and new vinyl, CDs and other music-related merchandise. (Olivia Vanni / The Herald)
New Edmonds record shop intends to be a ‘destination for every musician’

Rachel Gardner opened Musicology Co. this month, filling a record store gap in Edmonds.

MyMyToyStore.com owner Tom Harrison at his brick and mortar storefront on Tuesday, Sept. 6, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
Burst pipe permanently closes downtown Everett toy store

After a pipe flooded the store, MyMyToystore in downtown Everett closed. Owner Tom Harrison is already on to his next venture.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.