According to a report by Spiegel, the German Chancellor Angela Merkel disagrees with the plans of her Finance Minister Wolfgang Schäuble of a new Greek bailout prior to the upcoming elections for European Parliament. Mrs. Merkel believes that this may increase support for the Eurosceptic AfD party.
The Alternative für Deutschland party established itself just before the recent German elections with one main policy, to represent the growing German public’s resentment to the European bailouts for Greece, Portugal and Ireland, while even considering a return to the Deutschmark. The Eurosceptic party nearly made the necessary 5% of the vote to enter the German Parliament and since then it has grown in power and influence, while banking on the upcoming European elections in May.
As such, Mrs. Merkel felt that further assistance to Greece would increase the AfD’s popularity and, according to the German magazine, she has clarified to the Greek government that they should not bank on any such support. Mr. Schäuble’s intention with offering further assistance was to show solidarity to the Greek government in order to curb the raise of “radical parties in Greece” in light of the upcoming May elections.
The Spiegel’s report suggests that German analysts do not believe that the New Democracy / PASOK coalition would be able to survive such a development, which in turn could reignite discussions about the future of the Eurozone. The magazine notes that this is not the first time Merkel and Schäuble disagree on key issues, with the two having a different opinion on the IMF’s involvement.
