Germans Warn Greece: No Cuts, No Bailout

An election on Sunday in Greece failed to deliver a parliamentary majority for the two big pro-bailout parties, plunging the country into political limbo and increasing the risk that another vote may be required to resolve the impasse.

On Tuesday, the leader of the Left Coalition party, which benefited from rising anger over austerity to take second place in Sunday's poll, declared Greece's policy pledges under its EU/IMF rescue null and void. As Europe's largest economy, Germany has contributed the biggest share of the financial guarantees under the banks Greece's bailout, which is paid out in installments on the condition that Athens meets specific savings goals.

"The agreements must be respected. I don't think we can or should renegotiate," said Martin Schulz, a German politician and president of the European Parliament, on a visit to Berlin. Gerda Hasselfeldt, a senior member of the Bavarian Christian Social Union, sister party to Chancellor Angela Merkel's Christian Democratic Union, echoed Schulz in warning Greece against any backsliding. More...