Merkel in her speech in Hamburg yesterday said solving the debt problem in Greece is the key solution in regaining confidence in the euro and she revealed that speculators are taking advantage of the Greek budget woes to sell the euro which is causing it to decline further.

Moreover, she urged euro members using the single current to conform to budget criteria set by the EU as soon as possible. Also, she continued her attack on financial institutions in the wake of Goldman Sachs help to Greece to finance its deficit that Merkel described as a scandal. In addition, Germany is predicted to release new controls on hedge funds, following France which may tighten rules for credit-default swaps.