Greek aid talks

German Finance Minister Wolfgang Schaeuble is holding a meeting of party leaders about actions the country should take to help tackle the Greek financial crisis.

The talks on Monday are expected to focus on the technical details of making finance available as the likelihood grows that Germany will be asked to help.

As Europe's biggest economy, Germany is expected to be responsible for providing 8.4 billion euros ($11.2 billion) out of the 30 billion euros that Europe could be asked to provide this year. Opposition politicians want a special law to be to be passed by both the upper and lower parliamentary houses, before any transaction is approved.

Schaeuble has warned Athens that an overhaul of its economy was "unavoidable and an absolute prerequisite" for Berlin and the EU to approve the aid.

Volker Kauder, parliamentary leader of Chancellor Angela Merkel's Christian Democrats (CDU), said his party would help Greece if necessary. He added that any financial support would be subject to strict conditions.

"If the conditions are met, we'll do it. The chancellor has always said the last resort would be when the stability of the euro is in danger. I think we'll get the majorities in the coalition then," Kauder told German public broadcaster ARD television.

The need for a new law was a matter of transparency, Social Democrat budgetary committee chairman Petra Merkel told the same broadcaster. Merkel ruled out the idea of excluding Greece from the euro zone.

"I think that is no solution because in that case the euro would become a lot more unstable," she said.

Tough line taken by Germany

On Friday, Greek Prime Minister George Papandreou announced that Greece was asking the EU and the International Monetary Fund for 45 billion euros to help cover its public debt. Public opposition to a bailout is widespread, with Merkel pursuing a tough line on the conditions.

Germany and France have increased pressure on Greece to impose further austerity measures as a condition of approving a joint aid package from the International Monetary Fund and European Union.

At the weekend, Schaeuble reiterated his determination to insist on assurances that Greece will overhaul its economy.

It is expected that Germany's share would come from the KfW public bank, backed up by guarantees from the federal government.

German leaders, facing a key regional election in May, are under intense pressure to hold a hard line against Greece, with some members of the ruling conservative Christian Democrats calling for Greece to be kicked out of the euro zone.

rc/Reuters/dpa/AFP
Editor: Rob Turner