The crisis in the eurozone was set to escalate on Monday night after the Germans said they could not write off Greek debts without offering financial assistance to Ireland, Spain and Portugal.
George Osborne, the Chancellor, on Monday urged Angela Merkel, the German chancellor, to consider backing down to ensure there was not a “disorderly exit” from the eurozone.
He said “the situation risks going from bad to worse” and warned that “Britain will be affected the longer the Greek crisis lasts and the worse it gets”.
He suggested Britain could fly planeloads of euro notes to Greece to assist stranded tourists.
Mr Gabriel said plans for humanitarian aid for Greece must now be drawn up amid fears the country could run out of fuel and food.
The gulf between Germany, which is determined to stick to the rules of the bloc, and France, Greece’s last ally in the Eurozone in calling for a generous deal, widened last night.
At a joint press conference ahead of dinner at the Élysée Palace, Mr Hollande called for “solidarity” with the Greeks. “Europe is not just an economic, financial and monetary construction, Europe is a whole set of principles and values. A conception of the world,” he said
“In this Europe there is room for solidarity. Solidarity is everywhere to be seen in Europe and must be seen even more.”
But Mrs Merkel said the “preconditions” for a fresh bail-out “are not yet there”.
“We have already shown a great deal of solidarity to Greece,” she said. “The proposal we put to them was already extremely generous. We have to remain consistent.” She said that listening to the 18 other eurozone states “is also democracy”.
Full article: Germany refuses to let Greece off hook (The Telegraph)