German Lawmakers Prep For Greek Eurozone Exit - Handelsblatt
Yesterday it was Fitch setting the groundwork. Today the natural escalation has arrived, with a Handelsblatt report that German coalition lawmakers saying they are open to a Greek farewell. To wit: "Politicians of the CDU-FDP coalition will no longer look on the
goings on passively. Given the uncertain political situation in Greece are advocating for a withdrawal of the crisis-Mediterranean Heads of State from the euro zone. "We should offer Greece, leaving the euro zone controlled, without withdrawing from the European Union." For now this is merely posturing, as Greek is doing all it can to make it clear it does not need Germany. Of course, Germany has no other choice but to reply the way it has. The only problem is that the Nash equilibrium is now of mutual defection, which is the worst possible outcome for Europe, and even worse for US taxpayers, whose cash via the FRBNY's FX swaps will be used to rescue Europe when the dominoes finally tumble. But at this point, this it is pretty much a given.
Google translated from Handelsblatt:
Politicians of the CDU-FDP coalition will no longer look on the goings on passively. Given the uncertain political situation in Greece are advocating for a withdrawal of the crisis-Mediterranean Heads of State from the euro zone. "We should offer Greece, leaving the euro zone controlled, without withdrawing from the European Union," said the CDU budget expert Klaus-Peter Willsch Handelsblatt Online. It came to the Germans not to prescribe the Greeks, how they should live. The election results from Sunday but put to the conclusion that the Greek people not willing to take the considerable effort on which they need to lead the country to be competitive. "The dogma that no country is allowed to leave the euro zone, has already caused too much damage on European policy," added Willsch. The introduction of a new currency was tested many times. "It also offers more opportunities than a stubborn Greece Continue tracking the chosen erroneous path."
The vice chairman of the CDU parliamentary group, Michael Meister said, though, that it was not the aim of the EU partners, Greece expelled from the euro area. "However, it is clear when the new Greek government, contrary to expectations, the contracts comply, they will have to answer the announced consequences," said the CDU politician Handelsblatt Online. Champion Europe looks for well-prepared. So the last few years were in Europe as well as nationally, "well used" was to make provisions - with the Rekapitalisierungsgesetz, with the extended euro rescue EFSF or the future permanent rescue ESM including fiscal pact. "We are so much further than at the beginning of the crisis," said Master.
Nevertheless champions Greece urged to contract compliance. The Greek politicians are following the election required by the weekend to put together a government. "We can not assume the role of the Greek Parliament, nor a Greek government," he said. "We have assured the packages I and II of Greece, our support contract. We look to the future Greek government, no matter how it is composed, that it is true to the contract itself, "said the conservative politician.
And just to make sure the message is heard loud and clear, here is Spiegel as well:
As Greece struggles to form a coalition government in the wake of the May 6 parliamentary elections, several German leaders voiced their demands Wednesday that the country stick with the austerity measures negotiated as part of the most recent bailout package.
"Greece must know that there is no alternative to the agreed to restructuring arrangement, if it wants to stay a member of the euro zone," Jörg Asmussen told the German business daily Handelsblatt.
Asmussen, who is a member of the executive board of the European Central Bank (ECB), essentially issued an ultimatum to Greece, according to the paper, telling politicians in Athens that if they abandon the austerity measures that go with the second rescue package of €130 billion, the country's European Union backers will cease making their contributions.
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