Germans intensify their pressure

In his first tour abroad as prime minister, Samaras must win the last chance that Greece has to escape economic collapse.

While the international press is full of scenarios about a possible exit of Greece from the euro, the German media are trying to determine the cost of acquisition of the Greek debt refinancing of the Spanish deficits, and many European politicians are making conflicting statements that create an image of confusion without a common line, the burden of decision falls on Germany as it enters the final stretch for the 2013 elections.

Samaras’ meeting with Merkel is the most critical of the three tests he is required to pass in the next seven days. In his preparation for the meeting in Berlin next Friday, Samaras has realized that the choices are limited. The risk faced by the country is great and its European partners have taken care to make it absolutely clear, through public statements and leaks regarding their intentions and the alternative choices they are considering without Greece.

The decision is to present the German chancellor with the restriction of government spending by 11.5 billion just as it was agreed upon in the memorandum. Samaras will seek to conduct an initial exploratory discussion with Merkel on the potential extension of the fiscal adjustment program until 2016.

According to information, he will attempt to refute the view that a possible exit of Greece from the euro is manageable by the other 16 Eurozone countries, and to persuade the German government that Greece is not asking for even more money from the pockets of the German people for the Greek taxpayer.

“No more help to those that do not meet their commitments”, Philipp Rösler repeated on Sunday.

German Finance Minister Wolfgang Schäuble said on Saturday that the debt crisis should not become a “bottomless pit” for Germany. “There are limits,” he said and ruled out a new package of financial aid for Greece.

Two German Christian Democrat MPs are moving in a different direction, saying that Merkel is considering easing the terms of the bailout of Greece.

According to an article in German magazine Der Spiegel, Greece may have to implement 14 billion in cuts over the next two years to meet the program’s objectives.

According to French minister for European Affairs Bernard Cazeneuve, "it is important to allow the Greeks to express their demands, to await the Troika report and then discuss with other European countries in order to find the golden mean."

The debtors of Greece, the ECB, the E.U. and the the IMF, will return to Athens in early September to assess the program’s course, while the government will have to finalize the agreed program of 11.5 billion euros in cuts for 2013 and 2014.

Before Samaras’ appointment with Merkel on August 23, the German chancellor will meet with French President François Hollande to discuss the economic situation in the Eurozone.

The discussions between Merkel and Hollande come at a time of news stories that the ECB is considering setting limits on interest rates paid by Eurozone countries for future purchases of government bonds. For some, this plan is somewhat equivalent to printing money by the ECB.