Merkel wants EU deal on Greek write down

Addressing the German parliament shortly before a vote on boosting the firepower of the euro zone rescue fund that is set to strengthen Merkels negotiating hand at the euro zone talks, the chancellor vowed to push for workable, long-term solutions.“I will work towards reaching sustainable decisions this evening,” she said, warning that Greece would need the support of the European Union for some time to come and that no overnight fixes were in sight. “We will do all we can to get Greece back on its feet as soon as possible,” she said, adding: “A debt write down alone will not solve Greeces problems structural reforms must still be implemented.”“The goal of the meeting tonight must be to get a result under which Greece will by 2020 have a debt to gross domestic product ratio of 120 percent,” said Merkel. Under the sustainability scenarios put forward by the troika of the European Commission, European Central Bank and International Monetary Fund, that means a 50 percent write down from private sector investors.Merkel is set to win the vote in the Bundestag lower house of parliament, due around 1200 GMT, which will give her a mandate to negotiate at the summit. The chancellor, struggling to convince Germans of the need to support its indebted euro zone partners, said the future of the European Union was at stake.“The world is watching Germany and Europe to see if we are ready and able to take responsibility,” she said. “If the euro fails, Europe fails. That must not happen. We have a historic duty.” Although Merkel faces a rebellion from within her own centre-right coalition, the bill will almost certainly pass with a large majority because the government has agreed the joint motion with the opposition Social Democrats (SPD) and Greens.