Sunday, May 9, 2010

'Greece being forced to buy arms'

A leading European parliamentarian has accused France and Germany of forcing Greece to buy billions of euros in arms in exchange for their bailout money.

France and Germany, while publicly urging Greece to make harsh public spending cuts, bullied its government to confirm billions of euros in arms deals, Franco-German lawmaker Daniel Cohn-Bendit alleged on Friday.

The accusation drew a stern denial from the French government.

Cohn-Bendit said he had met last week in Athens with Papandreou, a long-time friend of his, and accused German Chancellor Angela Merkel and French President Nicolas Sarkozy of blackmailing the Greek leader.

Cohn-Bendit accused France and Germany of making their contributions to an IMF-led rescue package for the debt-ridden Greek economy contingent on Athens honoring massive arms deals signed by Papandreou's predecessor.

"Mr. Fillon and Mr. Sarkozy told Mr. Papandreou: 'We're going to raise the money to help you, but you are going to have to continue to pay the arms contracts that we have with you,'" Cohn-Bendit said.

On Friday, eurozone leaders approved a 110-billion-euro Greek aid package in an emergency summit in Brussels.

The meeting was held in an effort to restore confidence in the euro after the Greek crisis rattled financial markets worldwide.

SG/HGL

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