Greece must sell islands to cut its debts, two right-wing German politicians said in an interview that is bound to exacerbate tensions between Athens and Berlin.

Alongside austerity measures such as cuts to public sector pay and a freeze on state pensions, why not sell a few uninhabited islands or ancient artefacts, asked Josef Schlarmann, a senior member of Angela Merkel's Christian Democrats, and Frank Schaeffler, a finance policy expert in the Free Democrats.

The Acropolis and the Parthenon could also fall under the hammer along with temptingly idyllic Aegean islands still under state ownership in a rush to keep bankruptcy at bay.

"Those in insolvency have to sell everything they have to pay their creditors," Schlarmann told Bild newspaper. "Greece owns buildings, companies and uninhabited islands, which could all be used for debt redemption."

Only Tuesday the ruling socialist government in Greece published its third attempt at reducing the country's debts and pleasing EU governments, which have pledged to support the beleaguered Greek economy if measures to cut debts are enacted.

Strikes and street protests have already threatened to bring many industries and public services to a standstill if the cuts go ahead.
But Germans remain unmoved by the troubles facing Greece.

Opinion polls show Germans are overwhelmingly against a Berlin-funded bailout.
Greece's deficit was 12.7% of national income in 2009, well ahead of the EU's 3% limit.

Merkel to meet Greek PM

Merkel will meet the Greek prime minister, George Papandreou, in Berlin on Friday.
"The chancellor cannot promise Greece any help," Schaeffler told Bild in a story under the headline: "Sell your islands, you bankrupt Greeks! And sell the Acropolis too!"

"The Greek government has to take radical steps to sell its property – for example its uninhabited islands," Schaeffler told Germany's best-selling daily newspaper.

Greece's deputy foreign minister, Dimitris Droutsas, was asked about the idea in an interview with ARD TV.
"I've also heard the suggestion we should sell the Acropolis," Droutsas said. "Suggestions like this are not appropriate at this time."

Germans have had an allergic reaction to reports their country may be part of a bailout for Greece. Many fear that a bailout of Greece could lead to similar calls for cash from Spain and Portugal, which have also suffered severe recessions following the financial crash.

Europe's biggest economy itself is only just creeping out of its worst post-war recession. Last week figures revealed the German economy had stalled, while separately, politicians wrestled with a bigger bailout for its second largest bank, Commerzbank, which purchased billions of pounds worth of exotic financial instruments linked to US subprime mortgages.