EUROZONE CRUMBLES: Germany orders Greece to LEAVE euro if it wants debts cut

Germany seems to be enacting plan B for its European conquest: Consolidate and strengthen.

 

Wolfgang Schaeuble

olfgang Schaeuble said Greece must leave the euro if it wants debts cut (Getty)

 

HARDLINE German minister Wolfgang Schaeuble has warned the only way Greece’s loans can be written off is through the country leaving the eurozone, as the debt crisis once again blows up.

Angela Merkel’s finance chief ruled out cutting the amount of money owed by the struggling Mediterranean state in an interview on German television.

He insisted creditors must keep the pressure on Greece to meet the strict terms of its bailout programme or kick it out of the single currency.

Markets reacted with alarm after the minister raised the prospect of a Grexit.
Germany is Greece’s biggest eurozone creditor and wants to claw back all the money it lent to stop Athens collapsing into bankruptcy amid the financial crisis.

But fellow creditor the International Monetary Fund (IMF) this week admitted Athens’ debt load is unsustainable.

In apparent response Mr Schaeuble told broadcaster ARD: “We can’t undertake a debt haircut for a member of the European single currency, it’s ruled out by the Lisbon Treaty.

“For that, Greece would have to exit the currency area.”

However, Mr Schaeuble insisted Athens must carry out biting austerity and economic reforms laid out under the rescue programme.

He said: “The pressure on Greece to undertake reforms must be maintained so that it becomes competitive, otherwise they can’t remain in the currency area.”

Full article: EUROZONE CRUMBLES: Germany orders Greece to LEAVE euro if it wants debts cut (Express)

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