Germany prepares for ‘inevitable’ Greek crash

The German finance ministry is pushing for Greece to declare itself bankrupt and to agree to a ”haircut” on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.

Euro zone finance ministers meet today to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country’s finances in order. But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that German Finance Minister Wolfgang Schauble does not believe that any government would be able to implement them.

Full article: Germany prepares for ‘inevitable’ Greek crash (Canberra Times)