German Ecomony Minister “doubtful” whether Greece will remain part of Euro area
German Minister for Economics and Technology Phillip Roesler expressed his doubt regarding if Greece even be capable to conduct a proper austerity program.
The German Parliament is apparently not willing to completely prevent the bankruptcy of Greece anymore. Chancellor Angela Merkel stated that she does not consider any further financial aid for necessary. She also believes that it cannot work out again that the parliament would agree on a third bail-out package for Greece. Also Merkel is considering the stopping of financial aid is to maintain strength in the governing conservative-liberal coalition. In the past days criticism had commenced inside her own party.
Greece is attempting to spread out the €11.5 billion across the next couple years. Experts however see that then however, the second aid program would not be sufficient enough. It is believed that the Greece’s restricting program is in the area of two-digit billion Euros. Also the International Monetary Fund has announced now that it will start to cut down on aid for Greece.
German Minister for Economics and Technology Phillip Roesler explained that he not necessarily would consider it a destabilization if Greece would decide leave the Euro-Zone. Further, he expressed his doubt regarding if Greece even be capable to conduct a proper austerity program. He exemplified that if this does not get done properly there will not be any further aid from Germany.
Improvements are not really in sight. Greece has been in a recession for now already five years now. The EU regulation on not being more 3% in debt of your own gross domestic product will not work out by 2014. Greece is more than 9% indebted.