Euro states to maintain solidarity in crisis-Merkel

Euro zone states have always shown solidarity to each other and will continue to do so, Chancellor Angela Merkel said on Thursday, her strongest signal to date that Germany may be prepared to help weaker members of the bloc.

Asked at a news conference with the foreign press in Berlin whether Germany could provide support to some of the weaker members of the currency bloc, Merkel said:"We have shown solidarity and things will stay like that."

She referred directly to Ireland, which faces ballooning deficits and a sharp economic downturn, saying: "A country like Ireland is in a very different situation from a country that has fewer banks, such as Slovakia.

Merkel said it was important for euro zone countries to feel an obligation to the Stability and Growth Pact although it was not clear at this stage how European nations would get back on that path.

She also welcomed U.S. President Barack Obama's pledge to return to a policy of fiscal discipline once the worst of the crisis is over.

"Obama has pointed to the way ahead – after the crisis we will return to a policy of saving, I welcome that hugely," Merkel said.

She also referred to a divergence in bond yields within the euro-zone, saying this phenomenon would not automatically lead to a "worst possible scenario."

Asked whether European finance ministers would soon discuss the issue of helping fellow euro zone member states as Italian Prime Minister Silvio Berlusconi suggested on Sunday, she said coordination was necessary on the issuance of bonds within the currency bloc.

She said the simultaneous issuance of large amounts of debt could lead to a "difficult situation" and that euro members needed to work together to address this.

"(That) is an exciting question and we will talk further about it," Merkel said.