Germany softens on possibility of Greek departure

6 September 2011 | By Henry Brennan

A Greek exit from the eurozone is no longer considered a ‘taboo’ for the German government.

Angela Merkel

Angela Merkel

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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Readers' comments (1)

  • Anonymous | 6 Sep 2011 1:36 pm

    So be proactive for once and expel the weaker members to protect the core. Greece, Portugal, Ireland, Italy and Spain have historically had economies that relied on a constant slow devaluation of their currencies. They find the rigours of Euro membership too difficult to comply with - so let them go. nasty in the short term but better in the long term.

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