Germany Considers Grexit Manageable Scenario -Report

EU | January 4, 2015, Sunday // 13:12|  views

German Chancellor Angela Merkel, photo by EPA/BGNES

The German government believes that a Greek exit from the eurozone will be manageable, should it prove necessary, according to news magazine Der Spiegel.

Citing unnamed government sources, the weekly news magazine informed on Saturday that both German Chancellor Angela Merkel and Finance Minister Wolfgang Sch?uble believed that such a turn of events would be manageable due to the progress made by the eurozone since the peak of the sovereign debt crisis in 2012.

The risk of the “Grexit” having a contagious impact on other countries was limited as Portugal and Ireland were considered rehabilitated, the government source was quoted as saying.

The European Stability Mechanism (ESM) was described as a powerful rescue mechanism at hand, while the security major banks would be guaranteed by the banking union.

The German news magazine cited a high-ranking expert as saying that resourceful lawyers would come up with a mechanism through which a country could leave the eurozone and yet remain an EU Member State.

The Hamburg-based weekly stated that a “Grexit” would be almost inevitable if Alexis Tsipras’ leftwing opposition party Syriza won the elections on January 25 and the government suspended the austerity policy and stopped servicing the country’s debts.

Hours after the publication had emerged, Germany's government refused to comment.

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Tags: Syriza, greece, Eurozone, Wolfgang Sch?uble, Angela Merkel, German Chancellor


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