Merkel seeks to temper row over Greek budget control

(BRUSSELS) - Chancellor Angela Merkel sought Monday to placate critics of a German proposal to put Greece under the supervision of an EU budget tsar, saying Europe must help Athens enact economic reforms.

The debate must be on "how Europe can help Greece accomplish the tasks given to it," Merkel said on arrival at an EU summit after Greek officials and some European leaders rejected the proposal.

"But all of this will only work if Greece and other (EU) member states talk about it. This is why I do not want a controversial debate but a discussion that achieves success," she said.

The German suggestion to put Greece under stewardship cast a shadow over the summit which is aimed at sealing a fiscal pact to toughen budget discipline across the EU, finalising a rescue fund and finding ways to counter recession.

The idea that Greece might cede budget control to the EU was contained in a German submission to its eurozone partners first revealed late Friday by the Financial Times and confirmed by European sources.

Under the radical plan, denounced by Greek officials, a commissioner appointed by the 16 other eurozone finance ministers could veto budget decisions made by Athens.

The leaders of Luxembourg and Austria joined Greek officials in rejecting the proposal.

"I am strongly against the idea of imposing a commissioner with that mission only to Greece. That's not acceptable," said Luxembourg Prime Minister Jean-Claude Juncker, who also heads the group of eurozone finance ministers.