Merkel defends Greek primary surplus targets

German Chancellor Angela Merkel on Friday defended the long period of primary surplus targets for Greece, saying they were not a sign of lacking trust in the crisis-hit country but a necessary condition to reduce the level of debt.

“It’s a good compromise,” Merkel was quoted as saying during a press conference.

The German leader also rejected speculation that Berlin had struck a deal with Athens to accept migrant returns in exchange for a delay to a VAT-rate increase on five eastern Aegean islands hit by the refugee crisis.