Germany plans for exit from eurozone of Greek ‘clowns’

London:  Germany has disclosed that it is making contingency plans for Greece to leave the euro as “make or break talks” are expected to end without agreement.

Wolfgang Schaeuble, Germany’s finance minister, said he was not hopeful that Greece and its creditors would reach agreement on the release of new bail-out funds.

With Greece set to default on a US$1.1 billion ($1.4 billion) debt repayment, Mr Schaeuble said that Angela Merkel’s government was making emergency plans for the country’s exit from the eurozone.

The Left-wing Syriza government, led by Alexis Tsipras, has confirmed that Greece would run out of money by the end of the month unless its creditors agreed to release US$5.1 billion in bail-out funds.

Senior German politicians accused Mr Tsipras’s government of not having grasped the seriousness of the situation, describing Greek politicians as “clowns”.

Britain’s Downing Street also disclosed yesterday that British ministers were “stepping up” plans for “Grexit”.

George Osborne, Britain’s Chancellor of the Exchequer, has been chairing a meeting of ministers this week amid fears that British holidaymakers will be stranded abroad if Greece defaults on its debt repayment.

The British Treasury is making contingency plans to deal with “serious economic risks” to Britain should Greek leave the eurozone, Downing Street said.

Andreas Scheuer, an ally of Ms Merkel and secretary-general of her CSU party, said: “The Greek government apparently hasn’t realised the seriousness of the situation yet. They are behaving like clowns sitting in the back of the classroom, although they have received explicit warnings from all sides that they might fail to pass to the next grade”.

Full article: Germany plans for exit from eurozone of Greek ‘clowns’ (Sydney Morning Herald)

Comments are closed.