Merkel says deal with Greece still possible

BERLIN (Reuters): German Chancellor Angela Merkel said it was still possible for Greece to reach an agreement with its international creditors, striking a conciliatory tone despite Athens’ intransigence ahead of a key meeting on Thursday.

In a speech in parliament, during which she was interrupted by hecklers from opposition parties, Merkel also said Germany would work to keep Greece inside the 19-nation euro zone.

“I’m still convinced - where there’s a will, there’s a way,” she said. “If those in charge in Greece can muster the will, an agreement with the three institutions is still possible.”

Time is running out for Greece, which is set to default on a 1.6 billion euro debt repayment to the International Monetary Fund on June 30, possibly driving it towards the euro zone exit, unless it receives fresh funds.

“Germany’s efforts remain focused on keeping Greece in the euro zone,” Merkel told the Bundestag lower house, pressing Athens to decisively implement reforms.

“We want the Greek people, like the peoples of Ireland, Spain, Portugal and Cyprus, to gain the prospect of a better future,” she said, referring to countries that have made deep reforms in return for aid earlier in the euro zone crisis.

Merkel struck the emollient chord despite an opinion poll published last week showing that a narrow majority of Germans now want Greece to leave the euro zone.

After her speech some members of the radical Left party, who have long supported the ruling Syriza party in Athens, stood up and held signs reading: “Solidarity with Greece.”

The chancellor also faces growing opposition among her ruling conservatives to granting Greece any further bailout funds. Germany is Greece’s biggest creditor and the biggest contributor to the EU budget and the euro zone bailout fund. Hopes of a breakthrough at Thursday’s meeting of euro zone finance ministers, once seen as a final chance for an agreement, are looking increasingly dim.

Greece has been trying to bypass its international creditors - the European Union, International Monetary Fund and European Central Bank - by urging Merkel and other leaders to strike a “political deal” to unlock aid.

German opposition parties warned of the consequences of Greece leaving the euro zone.

“If Greece tumbles out of the euro, this would be a crash landing for the European Union as a whole,” said Katrin Goering-Eckardt, parliamentary leader of the Greens party.