Merkel Tells Greece, Euro Region That Bailout Isn’t a Done Deal

German Chancellor Angela Merkel hit the campaign trail with a warning to Greece and the rest of the euro region that a bailout of the debt-stricken nation isn’t a done deal.

“I’ve said for weeks that Greece must do its homework first,” Merkel said late yesterday, drawing applause from an audience in the town of Soest in North Rhine-Westphalia, where state elections are due on May 9. She said that while Germany is prepared to release funds for debt-stricken Greece, “first I want to see the program.”

Greece is paying the price for Merkel’s bid to keep her coalition in control of Germany’s biggest state and ease voters’ anger about having to help fund a $60 billion bailout. Greek bonds plunged yesterday as Germany’s reluctance to guarantee funds stoked concern that a rescue package co-financed by the euro region and the International Monetary Fund could still fall apart.Read more