The Haircut War Tensions Worsen Between Berlin and European Central Bank

What's best for Greece and Europe -- a soft debt restructuring or billions of euros in loans for years to come? Berlin and the ECB are deeply divided over the best way to handle the crisis. A number of influential Germans fear the threat of austerity measures could be greater than a "haircut" of Greek debt.
European Central Bank President Jean-Claude Trichet: The cold war between Berlin and Frankfurt reached a new high last week.

European Central Bank President Jean-Claude Trichet: The cold war between Berlin and Frankfurt reached a new high last week.

Foto: © Kai Pfaffenbach / Reuters/ REUTERS