Reply #15: europe: Germany climbs down over Greece bailout demands

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http://www.guardian.co.uk/world/2011/jun/17/greece-bailout-germany-private-banks

Angela Merkel has admitted defeat over Germany's plan to force private banks to contribute funds to a new bailout package designed to rescue the Greek economy.

After a meeting with the French president, Nicolas Sarkozy, in Berlin on Thursday, the German chancellor said they had agreed that any contribution from private creditors to the package would have to be voluntary.

"We want the participation of private creditors on a voluntary basis," said Merkel, stressing that there was no legal way in which banks could be forced to play along.

Sarkozy welcomed Germany's change of position, describing it as "a breakthrough".