Germany hits out at U.S. over economic crisis

BERLIN, September 27, 2011(Tehelkanews)

Germany told the U.S. on Tuesday to stop pointing the finger at Europe for its own economic woes while debt-wracked Greece promised to do its utmost to avert a financial meltdown in the eurozone.



Europe\'s snowballing debt crisis had nothing to do with the United States, which would do better to focus on solving the very real problems of its own, said German Finance Minister Wolfgang Schaeuble.



His barbed comments were clearly aimed at U.S. President Barack Obama who had warned a day earlier that Europe\'s failure to tackle crippling Greek debt was "scaring the world".



"It\'s always much easier to give advice to others than to decide for yourself. I am well prepared to give advice to the US government," said Mr. Schaeuble in an English-language address to the European School of Management and Technology in Berlin.



"Even if Obama is thinking the opposite, I don\'t think the problems of Europe are the reason for the problems of the US," he said.



Despite the sharp words, global stocks rallied for a second day running with huge advances in Europe on belief that EU and world leaders are preparing a blockbuster response to the eurozone debt crisis, traders said.



Elsewhere in the German capital, Greek Prime Minister George Papandreou insisted that Athens was pulling out all the stops to resolve the crisis and prevent it from bringing down the euro project as a whole.



"I can guarantee that Greece will live up to all its commitments. I promise you we Greeks will soon fight our way back to growth and prosperity after this period of pain," Mr. Papandreou insisted, adding that pillorying Greece would not help matters.



"If people feel only punishment and scorn, this crisis will not become an opportunity, it will become a lost cause. And we are determined to make this a success," said the Greek leader ahead of a crunch meeting with German Chancellor Angela Merkel on Tuesday evening.



Greece was making a "superhuman effort" to bring down its debt, he said.



Ms. Merkel said the crisis was not a crisis in the common currency itself, but in the huge debt piles amassed by eurozone members. "We don\'t have a euro crisis, but a debt crisis," she said.



Default speculation

She and Mr. Papandreou were to meet for a working dinner later amid increasing speculation that Greece could default, with the next installment of debt aid due under its May 2010 bailout accord with the EU and IMF hanging fire as officials review the country\'s finances.



Athens says the aid payment, worth eight billion euros ($11 billion), is essential for it to continue paying its bills. Chief auditors from the IMF, EU and ECB will return to Athens on Wednesday or Thursday — AFP


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