Thursday

19th Oct 2017

Juncker: Greek euro exit would be 'manageable'

  • Juncker: works 17 hours of 24 and spends another two of them reading poetry (Photo: consilium.europa.eu)

Jean-Claude Juncker, the chairman of the euro-using countries' club, the Eurogroup, has joined the ranks of people who say it would be OK if Greece left the euro.

Juncker spoke out on Greece in an interview with German TV channel, WRD, on Monday (5 August), in which he also revealed that he works 17 hours a day, but leaves "one or two hours" for reading literature, such as German poet Rainer Maria Rilke.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

He said that "from today's perspective, it [a Greek exit] would be manageable but that does not mean it is desirable."

He added that it will not happen "at least until the end of the autumn" and that if it does, he would know about it from government sources 48 hours before the media finds out.

German economy minister Philipp Rosler in late July already said the prospect of a Greek exit has "lost its terror," while local leaders in Bavaria said Greece should go before the end of the year.

Juncker distanced himself from the German point of view despite his own remarks.

He said some German politicians might not care what happens to the "little people" in Greece and that ordinary Germans "talk about Greece as if this were a people who cannot be respected."

"Perhaps this is the case with Mr Rosler. I do not care ... It would be good if more people in Europe would shut up more often."

The Juncker interview, posted on the Luxembourg government website on Tuesday, comes amid more bad news for Greece.

Its finance minister, Yannis Stournaras, told national press on Tuesday the government still has to agree on €4 billion of cuts to get the next tranche of its bailout.

He noted that he will probably fire more public sector workers and speed up asset sell-offs, with items such as railways, the lottery, an airport and state gas companies likely to go under the hammer.

"The numbers are not easy to find ... We must stay alive until Europe gives a complete solution on the problem of the eurozone," he said.

Stournaras' ideas were immediately savaged by the Democratic Left party, a ruling coalition partner, which called them a "fiasco," and by Syriza, the left-wing opposition party, which dubbed them a "crime."

For its part, US ratings agency Standard & Poor also on Tuesday painted a grim picture of the Greek economy.

It said in a note that Greece is locked in a vicious circle in which its GDP will contract by up to 10 percent in 2012 and 2013, in part due to the very austerity measures designed to avoid a default.

"The fiscal adjustments, if implemented, will in our view prolong the contraction of the economy, leading to a further loss of popular support for future fiscal and structural reforms and hence weakening the new government's already tentative mandate," it said.

It added that Greeks are continuing to pull out money from national banks, that banks are not lending to businesses and that tax collection is "well below target."

For their part, officials in the International Monetary Fund (IMF) - one of the three lenders behind the bailout, together with the EU and the European Central Bank (ECB) - told the Wall Street Journal that drastic moves might be needed to stave off bankruptcy.

The IMF sources indicated the ECB and eurozone treasuries should consider writing off another €17 billion of Greek debt and that the EU bailout fund, the European Stability Mechanism, might need to lend Greek banks €50 billion in a way that keeps the new loan off Greek national books.

Greece running out of cash as talks continue

Coalition partners in Greece have so far failed to agree the details spending cuts required by international lenders to unblock more aid, just as a minister warned cash reserves are drying up.

Greece spooked by Syrian refugees

The surge of Syrian refugees into Turkey has spooked Greece into deploying 1,881 additional guards on its border.

Eurozone leaders to have series of Greece meetings

Eurozone leaders will this week begin a round of shuttle diplomacy focussed on debt-stricken Greece amid reports that Athens' deficit problems are greater than previously thought.

News in Brief

  1. EU summit moved to previous building after fumes scare
  2. Catalonia will 'not back down'
  3. New toxic incident in EU building ahead of summit
  4. Murdered Malta journalist's family invited to Parliament
  5. EU food safety chief denies keeping studies 'secret'
  6. EU states pledge 24,000 resettlement places so far
  7. US ready for arms sale to update Greece's F-16 fleet
  8. Austria's Green leaders step down following election failure

Stakeholders' Highlights

  1. EU2017EENorth Korea Leaves Europe No Choice, Says Estonian Foreign Minister Sven Mikser
  2. Mission of China to the EUZhang Ming Appointed New Ambassador of the Mission of China to the EU
  3. International Partnership for Human RightsEU Should Seek Concrete Commitments From Azerbaijan at Human Rights Dialogue
  4. European Jewish CongressEJC Calls for New Austrian Government to Exclude Extremist Freedom Party
  5. CES - Silicones EuropeIn Healthcare, Silicones Are the Frontrunner. And That's a Good Thing!
  6. EU2017EEEuropean Space Week 2017 in Tallinn from November 3-9. Register Now!
  7. European Entrepreneurs CEA-PMEMobiliseSME Exchange Programme Open Doors for 400 Companies Across Europe
  8. CECEE-Privacy Regulation – Hands off M2M Communication!
  9. ILGA-EuropeHealth4LGBTI: Reducing Health Inequalities Experienced by LGBTI People
  10. EU2017EEEHealth: A Tool for More Equal Health
  11. Mission of China to the EUChina-EU Tourism a Key Driver for Job Creation and Enhanced Competitiveness
  12. CECENon-Harmonised Homologation of Mobile Machinery Costs € 90 Million per Year

Latest News

  1. EU okays Privacy Shield's first year
  2. EU seeks to decrypt messages in new anti-terror plan
  3. EU agencies defend research ahead of glyphosate vote
  4. Spain points at elections as exit to Catalan crisis
  5. How EU can ensure Daphne Caruana Galizia's legacy survives
  6. Juncker dinner to warm up relations with eastern EU
  7. Court hearing in MEPs 'private' expenses battle
  8. The unbearable lightness of leadership