Greek financial crisis a ‘threat to Europe,’ warns Germany

Germany today warned Greece's debt crisis threatened the future of Europe as it swung behind the international 110 billion

Chancellor Angela Merkel urged members of parliament in Berlin to quickly pass Germany's
22.4 billion share of the rescue package to prevent problems engulfing other countries.

Axel Weber, president of the Bundesbank and a council member at the European Central Bank, said the threat of "grave contagion effects" in the eurozone justified Germany's contribution.

It came as the euro hit a one-year low against the dollar — down 0.35 cents to $1.2953 — amid fears the crisis will spread to Portugal and Spain.

Financial markets are not convinced the bailout of Greece by the International Monetary Fund and European Union will be enough to keep the country afloat.

Merkel said: "This is about nothing less than the future of Europe and with it the future of Germany in Europe.

"There is no alternative to the aid to be agreed for Greece if we want to secure the financial stability of the euro area.

"It must come to avoid a chain reaction in the European and international financial system."