In an interview with the German broadcaster ARD, Merkel dismissed one of the Greek government’s main priorities.
“A classic haircut, or adoption of 30%-40% of the debt, is something the union cannot give,” she said and added that it could happen outside of the union.
However, the German Chancellor also said that there could be discussions over lower interest rates as well as longer maturity dates on Greece’s payments, but only after the first review of the bailout program, which will soon be negotiated.
Merkel also dismissed both rumours of her disagreeing with German Finance Minister Wolfgang Shcaeuble on how to deal with the Greek crisis and rumours of a rift between Schaeuble and Vice Chancellor Sigmar Gabriel over the same matter.
“We will now work together, both within the coalition and the party,” she said.