Will Germany help Greece?

Germany's Chancellor Angela Merkel

The question on many people's lips is whether Germany, the biggest economy in the European Union, will step in to help Greece, the country in the European Union with the biggest deficit. It's what many are going to be asking as Greek Prime Minister, George Papandreou, meets Germany's Chancellor Angela Merkel in Berlin.

Despite the speculation that the country will step in to help Greece, many oppose the aid of a country who has for years misreported budgets to hide their growing debt. In fact, a recent poll has shown that 71 percent of Germans think the EU should not help Greece at all. It is known that German's are big savers, not big spenders.

The Germans were even seen to be reluctant to pledge 440 billion euros to prop up their own banks and companies, they do not see why they should dig even deeper into their pockets to rescue the profligate Greeks.

Chancellor Merkel has warned that the euro is in the most difficult phase since its creation.

The belt-tightening measures introduced by Greece, including tax rises and spending cuts, have gone down very badly with public sector workers, but could reduce the risk of Greece needing help.

Plans for Greece

Political allies of Chancellor Merkel has even suggested that Greece should consider selling some of its uninhabited islands to cut its debt. Dotted in the blue waters of the Aegean are some of the country's most valuable assets - about 6000 islands, of which only 227 are inhabited. Many of them are privately owned by the world's rich.

One speculative plan would involve KfZ, Germany's state development bank, buying Greek bonds as part of an effort by the EU or the 15 countries that share the euro with Greece, the BBC states.

In the next few days, Mr. Papandreou will also meet President Nicolas Sarkozy of France and US President Barack Obama.

Mr. Papandreou has indicated he might go to the International Monetary Fund if the EU fails to help.

But with support for her centre-right coalition slipping before the May regional election in North Rhine-Westphalia - Germany's most populous state - Chancellor Merkel has reassured voters that she will not use taxpayers' money, nor breach the "no bail-out clause" in the EU's Maastricht Treaty.

"Germany cannot pay everything," says Michael Fuchs, deputy parliamentary leader of Chancellor Merkel's Christian Democratic Union (CDU).

Jodie Humphries

Jodie Humphries graduated from Bath Spa University with a BA Hons in Creative Writing in 2008. She has worked for GDS Publishing for the digital group since July 2009. She has previous experience with writing for the web, running her own website since April 2007.

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