Angela Merkel will face protests during Greek visit
German Chancellor Angela Merkel will visit Greece next week to discus keeping the country in the eurozone. Large displays against her are expected. Many Greeks blame Merkel's austerity measures for their nation's troubles.
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As difficult as these talks are, lenders are now realising Greece needs more time, money or both. The IMF wants official lenders such as Germany to take a "haircut" under which the value of the Greek debt they hold would be radically reduced. Private bondholders have already swallowed such a hit but EU partners prefer other measures than to suffer more losses.
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In order to avoid going back to parliament to request a third rescue for Athens - a step Merkel allies acknowledge could be political suicide for her - Germany will probably have to agree to other concessions to plug a hole inGreece's finances.
These could include giving Samaras an extra two years to make painful cuts and agreeing to a reduction in the interest rates Athens pays on its EU loans.
Before making concessions that are sure to provoke a backlash at home, Merkel will want to look Samaras in the eye and make clear to him that she has done all she can - that it is now up to him. Politically, she will have next to no room to give the Greeks more before next year's German vote.
"She has to lay it on the line and make clear to the Greek government what the options are," Michael Fuchs, a senior lawmaker in Merkel's Christian Democrats (CDU) told Reuters. "Whether the conditions for additional help are met depends not on Germany, but on the Greek government alone."



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