(Thumbnail Image: The Federal Chancellor)

 

After months of speculation and dealing, Eurozone leaders have agreed on a potential bailout plan for Greece. German Chancellor Angela Merkel pushed to have the International Monetary Fund help support a third of the 22 billion euro contingency plan. Many call it a political victory for Ms. Merkel.

A France 24 reporter says Ms. Merkel is adamant about having the IMF help out because of her constituents back home.

 

"Angela Merkel is under a lot of pressure in her country, and that explains, of course, her very uncompromising stance on the issue. There is a regional election coming on May 9, and the idea of Germany having to pay for the mistakes of the previous Greek government doesn't go down well at all in Germany... So it looks indeed like domestic issues -- like very often is the case here in Brussels -- domestic issues in Germany are dictating the behavior of Angela Merkel."

But a market strategist tells the Business Insider says Ms. Merkel's stipulations in the bailout deal have hurt the E.U.

"We cannot say whether Merkel’s motivations are politic, selfishness or just stupidity.  It is so misguided we are wondering if it is a secret plot to weaken the Euro and boost the E.U. economies. ... The problem is that the dysfunctional structure of the E.U. has been exposed.  If a small problem like Greece cannot be solved, imagine if and when a larger problem arises."

CNBC's Guy Johnson says Ms. Merkel's win is political, but some see the use of Eurozone funds on a bailout as unconstitutional.

"Germany is being seen as the big winner coming out of this. I have to say, that is the real theme that is emerging here. Angela Merkel has played hardball. She got what she wanted. But the legacy of this decision is really going to be quite immense. ...This is not a long-term solution, and Merkel's making that clear as well. And we've got four leading academics writing in the FT today, and these guys have a lot of influence, saying that if Germany pays out a Euro cent towards Greece, they will take Germany to the Constitutional Court, and effectively that could lead to Germany leaving the Eurozone. That's kind of what they're implying."

Finally, a retired London economics professor writes in his EUobserver blog that Ms. Merkel is just selfish.

"[S]he clings to her position stubbornly, refusing to face the consequences of financial contagion. '[T]hey deserve not a cent’ says Headmistress Merkel. Politically, this goes down well with the German electorate. Economically, it is nonsense."

So is the Greek bailout a Merkel victory or not? Where do you think her motivations lie?

Writer: Brandon Twichell

Producer: Newsy Staff

Business News

Greek Bailout a Victory for Merkel?

March 26, 2010
(2:35)
Eurozone leaders have agreed upon a possible bailout plan for Greece, yet Germany is seen as the biggest winner in the deal.
   
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