German Finance Minister Still Sees Temporary Grexit as Better Option

EU | July 16, 2015, Thursday // 11:06|  views

German Finance Minister Wolfgang Schaeuble gives a press conference at the end of an Ecofin Finance ministers meeting at the European Council headquarters in Brussels, Belgium, 14 July 2015. Photo: EPA

German Finance Minister Wolfgang Schaeuble still thinks that a temporary exit of Greece from the eurozone would perhaps be a better option for the country.

Schaeuble said this in an interview for Deutschlandfunk radio on Thursday, daily Kathimerini informs.

The idea of a temporary Grexit was aired during the negotiations on a third bailout between Greece and the eurozone at the weekend.

However Schaeuble assured that he would submit a request to the German parliament to reopen negotiations on the bailout agreement “with full conviction”.

According to him, the approval by the Greek Parliament of the austerity reforms, which Athens has to implement in order to be granted the new bailout, was an important step forward.

In his words, many economists expressed doubt that the problems of Greece can be solved without a debt haircut.

Schaeuble explained that a debt haircut would be incompatible with a country's membership to the eurozone, therefore the country will have to exit the currency union temporarily.

Before Greece is granted the new bailout, the parliaments of several EU member states will have to approve the terms of the deal.

The French Parliament overwhelmingly approved the bailout agreement on Wednesday, while the German Bundestag is set to vote on the rescue plan on Friday.

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Tags: greece, Germany, Wolfgang Schaeuble, Grexit, Eurozone, bailout, reforms, debt haircut, debt, austerity


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