German Chancellor Angela Merkel insisted yesterday her country would not pressure Portugal into a bailout to stop Spain and Belgium from becoming the next casualties of the sovereign debt crisis.
She said the solidarity was there and any country could apply for it but “it is not our policy to force any country to do anything. A country needs to apply for help and we will not give recommendations to anyone”.
Mrs Merkel was addressing a joint press conference with Prime Minister Lawrence Gonzi at the end of talks between the two leaders during her first visit to Malta.
“We never put pressure on any country to take certain steps. They know help is available but these countries are free to ask for solidarity if they need it. Portugal has not asked for it and we will not put pressure on Portugal to take it.”
She said that bailouts were not a matter of simply writing a cheque but described them as “an expression of solidarity with clear conditions” which were there to ensure financial stability.
She noted that efforts of many countries to respect the Growth and Stability Pact of the euro area were being overlooked, adding that she looked forward to the time when the EU would have a permanent mechanism to deal with possible future crises. She hoped this would be discussed by EU leaders in March.
The two leaders discussed bilateral relations and investment by German companies in Malta, such as that of Lufthansa Technik, and the provision of financial services to German firms.
Dr Gonzi said they also spoke about illegal immigration and he thanked Germany for its support in this regard. Germany recently took a number of migrants from Malta and helped them seek a better life in Germany.
Asked by a German journalist about the €5 billion asked for by Libyan leader Muammar Gaddafi in exchange for Libya’s help in curbing illegal migration, Dr Gonzi said no substantial amount of money to one person would solve the problem.
“The EU needs to sit down and talk with Libya which is a transit country. Illegal migration is the fruit of poverty and financial instability in countries in the horn of Africa but Libya is just a transit country. A framework agreement is being discussed between the EU and Libya but paying a large amount of money to somebody is not something which will solve the problem,” he said.
The two leaders also discussed energy and the EU electricity grid which, Mrs Merkel said, would benefit islands such as Malta which would not be cut out from the rest of Europe.
During her short visit, Mrs Merkel paid a courtesy visit on President George Abela and received Opposition Leader Joseph Muscat at her hotel. She leaves Malta at 8.15 a.m. today for Cyprus.