Germany’s Schäuble: Greece Needs To Reform Or Leave Euro Zone

EU | February 9, 2017, Thursday // 15:15|  views

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German Finance Minister and ideologue of the rescue programme for Greece Wolfgang Schäuble has stated that the country needs more reforms. He also pointed out that Athens will have to part with its membership in the Euro zone if it wants some of its debts to be remitted.

In an interview for German TV ARD, cited by The Guardian, he added that such remitting of debts would be in violation of European rules.

“We cannot accept the slashing of debts for a member of the European common currency; this is out of the question under the Lisbon agreement. This is why Greece has to leave the common currency,” stated Schäuble. 

The minister added that “pressure on Greece to carry out the reforms needs to be maintained so that it can become competitive. Otherwise, it cannot stay in the Euro zone.”

Earlier, this week, the IMF stated that Greece’s state debt is unstable and will remain so even if the country fulfils all its commitments under the rescue programme.

According to the IMF, Greece’s debt is wholly unstable and this is the reason why it cannot be included in the payment of new credits, unless additional terms are adopted which would permit the remitting of a significant part of the debt on the part of European creditors and the implementation of additional measures for further layoffs.


Tags: Germany, greece, debt, rescue programme, layoffs, EU, creditors, reforms, Wolfgang Schäuble

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