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German FinMin: May consider growth measures for Greece
May 12, 2012 / 2:01 AM / 6 years ago

German FinMin: May consider growth measures for Greece

BERLIN, May 12 (Reuters) - Germany is willing to consider additional measures to promote growth in Greece but the struggling economy must still carry out the agreed reforms, German Finance Minister Wolfgang Schaeuble said in an interview with Welt am Sonntag weekly.

“If the Greeks have an idea of what we could do, in addition, to promote growth, we can always talk and think about this,” Schaeuble was quoted as saying. “But ultimately it is about making Greece competitive again, allowing the economy to grow and opening the path to the financial markets again.”

“That requires the agreed, fundamental reforms being carried out, otherwise the country has no prospects.”

Germany on Friday laid out its support for a European “growth pact” in an attempt to deflect criticism that its insistence on austerity has exacerbated Athens’ debt woes.

But it also told Greece that staying in the euro zone was its own choice and that it must not stray from austerity if it expects to get international cash.

“I can understand the Greeks well ... they are suffering a lot,” said Schaeuble. “There is no comfortable path for Greece.”

“There is not a better solution. Greece must now show if it has the power to get the necessary majorities for this. I can only hope that those responsible in Greece will quickly see reason.”

Greece was plunged into turmoil after a general election boosted far-left and far-right groups, stripping mainstream parties, which back a painful EU/IMF bailout, of their parliamentary majority.

But Germany, the European Union’s paymaster, and the European Commission have repeatedly insisted that Greece must persevere with tax hikes and spending cuts in order to continue receiving funds under its EU-IMF 130 billion euro bailout.

Schaeuble said Germany did not want Greece to leave the euro zone but could not force the country to remain within the currency bloc either.

“Of course we do not want Greece to leave, that is quite clear and unambiguous. But .. we would be a strange government if we did not prepare ourselves for all thinkable scenarios, to then also be able to master them, including situations that would not be easy for Europe.” (Writing By Sarah Marsh; Editing by Peter Cooney)

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