September 10, 2011 / 9:21 PM / 8 years ago

Germany studies potential impact of Greek default

BERLIN, Sept 10 (Reuters) - Germany’s Finance Ministry is studying the potential impact of a Greek debt default, working through scenarios which include Greece abandoning the euro to reintroduce the drachma, Germany’s Der Spiegel magazine reported on Saturday.

Whether or not Greece remained in the euro zone, German officials believe the European Financial Stability Facility (EFSF) would play a key role in managing any default on its debt, the magazine reported.

It said the EFSF should be equipped as quickly as possible with new powers agreed for it by EU leaders in July.

A spokesman for the finance ministry declined to comment in detail on the Spiegel report but said the government was working on implementing the agreement reached by EU leaders in July.

Possibly in an effort to ratchet up pressure on Athens, several senior politicians in Angela Merkel’s centre-right coalition have raised the question of Greece leaving the euro zone, a scenario the chancellor herself has ruled out.

Der Spiegel quoted senior conservative politician Volker Bouffier as saying: “If the Greek government’s efforts to make cuts and reform are not successful, we must also ask the question whether we don’t need new rules which make possible the exit of a state from the currency union.” (Reporting By Madeline Chambers; Editing by Peter Graff)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below