Saturday

3rd Dec 2016

Germany: eurozone would survive Greek exit

  • There are no provisions in the EU treaties for a country leaving the eurozone (Photo: YoungJ523)

German finance minister Wolfgang Schauble has said the eurozone would survive if Greece left it, with the single currency structures more robust than two years ago.

"We want Greece to remain in the eurozone. But it also has to want this and to fulfil its obligations. We cannot force anyone. Europe will not sink that easily," he said in an interview with Friday's edition of the Rheinische Post.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

"The idea that we would not be able to react quickly to something unforeseen is wrong", he said. "We have learned a lot and built defences."

He said that the contagion risk for other euro countries had lessened and that the eurozone as a whole was more resilient.

"European countries and private creditors have made extraordinary moves towards Greece. We did what was possible."

His words come as the likelihood of Greece's departure from the eurozone increased after Sunday's parliamentary elections in which almost two thirds of voters chose parties that said they want to either renegotiate or scrap entirely the conditions attached to EU-IMF bailouts.

Politicians are now on their third attempt to form a government and the country may have to return to urns in June for a second election.

Time is pressing as there is an end-of-June deadline for Greece's parliament to approve a further €11.5 billion in cuts in return for the loan money.

For his part, Schauble said it was "dangerous" to allow Greek citizens to believe that there is a simpler way that avoided "hardships" to get Greece back on a healthy economic path.

Legally the exit issue is a quagmire. There are no provision for countries either leaving the single currency voluntarily or being booted out. Under EU rules, a country would normally have to leave the EU to leave the eurozone.

Analysis

Doubts hang over EU investment plan's future

Questions of value for money and a lack of transparency complicate adding almost €200 billion more and extending the Juncker investment plan to 2020.

News in Brief

  1. Talks on wholesale roaming rules to start
  2. Lead MEP Dieselgate committee: Italy and Slovakia will cooperate
  3. Transparency NGO sues EU commission on Turkey deal
  4. Pro-EU liberal wins UK by-election
  5. Finnish support for Nato drops, Russia-scepticism grows
  6. Cyprus talks to resume in January
  7. Documents from German NSA inquiry released
  8. Transport commissioner 'not aware' of legal action on emissions

Stakeholders' Highlights

  1. European Gaming & Betting AssociationContinues to Grow its Membership and Welcomes its Newest Member Association
  2. ACCASupports the Women of Europe Awards, Celebrating the Women who are Building Europe
  3. European Heart NetworkWhat About our Kids? Protect Children From Unhealthy Food and Drink Marketing
  4. ECR GroupRestoring Trust and Confidence in the European Parliament
  5. UNICEFChild Rights Agencies Call on EU to put Refugee and Migrant Children First
  6. MIRAIA New Vision on Clean Tech: Balancing Energy Efficiency, Climate Change and Costs
  7. World VisionChildren Cannot Wait! 7 Priority Actions to Protect all Refugee and Migrant Children
  8. ANCI LazioRegio-Mob Project Delivers Analysis of Trasport and Mobility in Rome
  9. SDG Watch EuropeCivil Society Disappointed by the Commission's Plans for Sustainable Development Goals
  10. PLATO15 Fully-Funded PhD Positions Open – The Post-Crisis Legitimacy of the EU (PLATO)
  11. Access NowTell the EU Council: Protect our Rights to Privacy and Security
  12. ACCAThe Future of Audit Means Adaption to Today’s Global and Digital World