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German Finance Minister Wolfgang Schäuble talked tough on Brexit by suggesting the debt relief wouldn’t help Greece and regardless of that, Athens would have to pursue economic reforms. As of now, debt in Greece stands at staggering 175 percent of GDP and it is unsustainable at €330 billion. The Eurozone, especially Germany and the International Monetary Fund (IMF) have been at odds over Greek debt levels. IMF strongly feels that the level is unsustainable, whereas Germany ruled out debt forgiveness to Greece. Previously the two agreed that some form of relief would be carried out, in order to keep IMF as a partner in the bailout. However, in a letter IMF told Germany to provide relief to the Greek government or it would exit the bailout program and has called for unconditional debt relief.
Speaking to the newspaper Bild am Sonntag, Mr. Schäuble said ahead of the European finance ministers’ meeting in Brussels, “Athens must finally implement the needed reforms……If Greece wants to stay in the euro, there is no way around it…in fact completely regardless of the debt level.”
It looks like, facing a backlash at home; a Grexit is no taboo for Germany.
