EU Socialists blame Merkel for Greek downgrade

BRUSSELS, April 28 (BestGrowthStock) – The Party of European
Socialists said on Wednesday German Chancellor Angela Merkel’s
hesitation about offering aid to Athens had led to the
downgrading of Greece’s credit rating to “junk” status.

The Party of European Socliasts (PES), an umbrella group of
European Socialist parties, is in opposition to Merkel’s
Christian Democrats and other right-wing groups belonging to the
European People’s Party in the European Parliament.

A downgrade by credit rating agency Standard & Poor’s on
Tuesday exacerbated Greece’s crisis, weakening global stocks and
pushing the euro to a one-year low against the dollar.

“The downgrading of Greece’s sovereign credit rating to junk
status is an indictment of Angela Merkel’s policy of
prevarication,” Socialist leader Poul Nyrup Rasmussen said in a

Rasmussen said Merkel had waited too long before agreeing to
offer concrete help to Greece because she had yielded to
domestic pressure in Germany, where there is popular opposition
to aiding Greece.

“Since January of this year, fully 4 months ago, the euro
zone has looked in vain for leadership from Germany. However,
all this time Merkel has decided to put local politics before
international solidarity,” said Rasmussen, a former Danish prime

Rasmussen urged European leaders to endorse a
Socialist-designed aid mechanism for countries in trouble, such
as Greece.

The plan calls for setting up an emergency fund to prevent
defaults by euro zone countries, which would be part of the
European Investment Bank (EIB), the EU’s government-owned
financing arm which issues bonds to secure cash for various
projects such as energy or motorway construction.

(Writing by Marcin Grajewski)

EU Socialists blame Merkel for Greek downgrade