Angela Merkel warns Greece ahead of vote

By EDDIE BARNES
Published on 17/06/2012 00:00

GERMAN chancellor Angela Merkel warned Greece last night that it cannot renegotiate its bailout as the nation prepares to vote in today’s crunch elections that threaten the future of the Eurozone and could have dire consequences for the UK.

Athens will not be allowed to dodge its austerity agreement and “lead everyone else through the arena by the nose ring”, Merkel said.

European leaders fear the poll, a re-run of a vote held six weeks ago that failed to return a government, could see Greece crash out of the single currency if anti-austerity party Syriza wins.

Unofficial polls put it level with the conservative New Democracy Party, which has told voters they face a choice between keeping the euro and returning to the drachma.

Merkel, Prime Minister David Cameron and other key EU figures have pledged to take the “necessary action” needed to secure global economic stability in a video conference call setting the groundwork to tomorrow’s G20 meeting of leading economies in Mexico.

The Greek poll is viewed as such a potential flashpoint in the Eurozone’s future, the German Chancellor, French President Francois Hollande and Italian premier Mario Monti are expected to delay their travel to Los Cabos to be in place to deal with the immediate aftermath of the results. Cameron, who will be on a flight to Los Cabos, will be in touch with London via satellite phone.

Merkel said: “We will have to speak to any government. I can only warn everyone against leaving the currency union. The internal cohesion of the Eurozone would be in danger.”

Central banks, including the Bank of England, Bank of Japan and US Federal Reserve, are expected to launch emergency support measures to cushion the blow of an implosion in the Eurozone.