Schaeuble Rules Out Greek Default as Samaras, Troika Bargain
German Finance Minister Wolfgang Schaeuble ruled out a Greek sovereign default as the cash- strapped country and international inspectors seek agreement on policies before an Oct. 18 European Union leaders’ summit.
“It will not happen that there will be a ‘Staatsbankrott’ in Greece,” Schaeuble said in English at a forum in Singapore today. “Greece has had to take a lot of very serious reforms” and an increasing majority of the population “does understand that being a member of the common European currency is in the best interest of Greece,” he said.
Schaeuble said he doesn’t see “any sense to speculate on Greece leaving the euro” because it would be very damaging for both the country and the region. Germany is ready to assist Greece to build a competitive economy and functioning public administration, he said.
Speculation about a Greek exit intensified as public opposition to spending cuts widens and Prime Minister Antonis Samaras’s government stalls on budget cuts. A deal with the troika of the International Monetary Fund, European Central Bank and European Commission is needed to unlock a 31 billion-euro ($40.2 billion) aid installment that the Greek government needs to recapitalize its banks and pay debts.