October 28, 2011 / 2:43 PM / in 6 years

Merkel: Must prevent others from seeking hair cuts

DEGGENDORF, Germany (Reuters) - Chancellor Angela Merkel said on Friday it was important to prevent others from seeking debt reductions after European Union leaders struck a deal with private banks to accept a nominal 50 percent cut on their Greek government debt holdings.

“In Europe it must be prevented that others come seeking a haircut,” she said.

Speaking in the Bavarian town of Deggendorf, Merkel also said that it was important to put restraints of speculative financial elements and show banks with better regulations.

Merkel also told a meeting of her conservative party that it will take many years to overcome the sovereign debt crisis, noting that it was affecting not only Europe but also the United States and Japan as well.

Reporting By Christian Kraemer; writing by Erik Kirschbaum

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