Merkel’s U-turn – suggests a “Grexit” – Aftonbladet

Merkel's U-turn – suggests a "Grexit" – Aftonbladet

In the past, the German government wanted to save Greece remains in the euro at any price.

But now Chancellor Angela Merkel waiting. According to Der Spiegel, Germany thinks now that the euro could cope with a “Grexit”.

In the fiery euro crisis a few years ago claimed Germany, with Chancellor Merkel in the lead, that Greece forced to be saved remain in the euro zone. If the troubled country left the euro would mean the beginning of the end for monetary union, it was called then.

But now it seems the German government have turned. According to unconfirmed reports in Der Spiegel, which, among others, Swedish Radio and Bloomberg reports about, says Germany now that a “Grexit” would be manageable.

“EMU is more stable”

Both Chancellor Angela Merkel and Finance Minister Wolfgang Schäuble is now supposed to believe that the eurozone would cope with a Greek exit without falling apart.

The reasons include that a rescue fund established which has improved the euro zone’s stability. In addition, the risk of a “Grexit” spreads to other problems in the eurozone declined because their financial situation has become stronger, the newspaper said.

Want to write down debt

And soon, a Greek exit become a reality. On 25 January the country to early elections. Then left coalition SYRIZA take power. SYRIZA has promised to increase government spending in Greece. The party also wants to see a new write-off of Greek sovereign debt.

It would probably not the countries that lent money to Greece to accept. The consequence could be that Greece leaving the single currency.