Reuters logo
Merkel ally says Cyprus "playing with fire"
March 22, 2013 / 7:33 AM / in 5 years

Merkel ally says Cyprus "playing with fire"

BERLIN (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.

German Chancellor Angela Merkel (R) attends a parliamentary faction meeting of the coalition of the liberal Free Democratic Party (FDP) to discuss a Cyprus bailout plan in Berlin, March 22, 2013. REUTERS/Thomas Peter

Volker Kauder, leader of the ruling Christian Democrats (CDU) in parliament, also rejected the suggestion that Cyprus might nationalize 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.”

Writing by Noah Barkin

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below