Merkel ally says Cyprus "playing with fire"

BERLIN, March 22 Fri Mar 22, 2013 3:25am EDT

BERLIN, March 22 (Reuters) - A leading conservative ally of German Chancellor Angela Merkel said on Friday that Cyprus was "playing with fire" and needed to come up with a workable proposal for plugging a multi-billion-euro financing gap urgently.

Volker Kauder, leader of the ruling Christian Democrats (CDU) in parliament, also rejected the suggestion that Cyprus might nationalise pension funds of semi-public companies to fill the hole, saying this was a worse solution than hitting small savers in the Mediterranean island's banks.

"I don't think this can happen, because this would be huge for pensioners, for the small people. So I don't think this is a proposal that helps," Kauder told public television station ARD.

"If a proposal comes, I am optimistic. But we aren't there yet," he added. "I still believe we will get a settlement, but Cyprus is playing with fire."

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.