Athens, 5 March 2010

“Let me be absolutely clear: Greece is not asking for a penny from German taxpayers. We are asking for political support, not financial aid.

Currently, Greece has to borrow at interest rates almost twice as high as Germany and other EU countries. Greece must be able to borrow at rates that aren’t prohibitively high. Otherwise we will have a difficult time implementing our tough austerity measures. My government is determined to overcome the huge credibility and budget deficit that we inherited. We are also addressing structural reforms that have stifled productivity for decades.

Greece is being attacked by speculators who are putting the entire European project at risk. We need greater coordination and better regulation in order to protect our monetary union from speculation. Greece is the latest — but surely not the last — casualty of leaving financial markets unregulated. While Greek pensioners and civil servants are asked to accept drastic pay cuts, speculators are making billions every day on the back of Greece’s problems. This is not about politics: this is about profits.

This is not about Germany or Europe rushing to the aid of a reckless country – helping Greece will help Europe’s economy to recover faster. The price of not acting will be higher taxes, higher unemployment, and a slower economic recovery for all of Europe – not just Greece. Greece is one of Germany’s biggest export markets – In 2008 Germany was Greece’s largest import partner, with around  12% of Greek imports coming from Germany.So it is in Germany’s interests to ensure that the Greek economy is healthy for domestic growth as well.

We need to work together to address today’s urgent challenges – challenges that will determine the future,the stability of the Euro and the European Union."