Sunday, January 4, 2015

Germany prepares for “Grexit” – Swedish newspaper Svenska Dagbladet

Germany prepares for "Grexit" – Swedish newspaper Svenska Dagbladet

The Left SYRIZA leads polls for Greece’s election. Alexis Tsipras party not talking about a defection from the euro as a specific target, but want to tear up the economic crisis arrangements with the EU and the IMF (International Monetary Fund).

The scenario has been Germany to prepare for the previously unthinkable, writes the magazine Der Spiegel. “German government sees a defection from the euro zone is almost inevitable if the opposition leader Alexis Tsipras becomes head of government after the election, abandoning fiscal discipline and does not pay its debt,” it is said, citing sources close to Merkel and Finance Minister Wolfgang Schäuble.

Sources speak of such a development as “bearable” for Germany, whose wealth has given the country eurozone’s strongest voice. The reason is, among other things, that you now have in place emergency mechanisms to ESM, euro zone assistance fund.

German spokespersons for the government insures after Der Spiegel article that everything is hunky-dory.

– Greece has lived up to its commitments in the past. (German) government assumes that Greece will continue to honor its promises, says spokesman Georg Streiter told AFP.

The Finance Minister has previously signaled a hard line on Greece wants to renegotiate the tough savings program outside world insisted.

– If Greece chooses a different path, difficulties, said Schäuble recently.

– New election does not change the arrangements we have with the Government of Greece.

Greece one thing, but EU giants are just as worried about the whole Union’s reputation at a so-called Grexit.

– It involves many risks for the euro zone’s stability, said Peter Bofinger, adviser to the German government, the Welt am Sonntag.

– The spirit that would come out of the bottle becomes difficult to control.

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