Germany softens on possibility of Greek departure
A Greek exit from the eurozone is no longer considered a ‘taboo’ for the German government.
At a meeting between Chancellor Angela Merkel and members of the CDU/CSU parliamentary group, Merkel apparently softened her stance on the problem, according to the Financial Times Deutschland (FTD).
While Merkel still argues a Greek departure is both technically and legally untenable, it is a less definitive position now that Greece appears to be struggling with the terms of its rescue package.
Merkel said her concern was the possibility of a “domino effect” on the rest of the eurozone which could prove “extremely dangerous” for the monetary system, says the FTD.
Former Chancellor Gerhard Schröder used the meeting to warn against putting too much pressure on Greece, citing concerns that it could lead to domestic conflict.
Schröder also took the opportunity to defend the recent bond purchase programme by the European Central Bank.
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