BERLIN (MNI) – European leaders at their summit next Monday will
not deal with the second aid package for Greece, German Chancellor
Angela Merkel said Thursday at a joint press conference with Spanish
Prime Minister Mariano Rajoy.

Echoing remarks made earlier today by a senior government official,
the chancellor said that in all likelihood the progress report on Greece
by the troika of the ECB, the EU Commission and the IMF will not be
ready by Monday.

Commenting on the desired private sector involvement in the Greek
rescue measures, Merkel said the talks between private banks and Greece
were “on a good path.”

Spanish Prime Minister Rajoy confirmed his view that the future
permanent rescue fund, the European Stabilisation Mechanism (ESM),
needed more firepower than the earmarked E500 billion. However, this was
not a topic of talks with Chancellor Merkel today, he claimed.

The German government has made clear this week on several occasions
that it sees no need to increase the funds of the ESM.

Rajoy said the first priority is to make the ESM operational as
quickly as possible.

Turning to his domestic efforts, the prime minister said it would
take time before the structural reforms undertaken by his government
impact positively on the economy. “Spain is facing a very long and
difficult phase,” he cautioned.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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