Sunday, May 8, 2011

German economy Minister rejects the output of Greece of euro

BERLIN - the Minister of the economy of the Germany dismissed speculation Sunday that the Greece should abandon the euro area and return to the Drachma, arguing that this would weaken only Europe at a time where it should be strengthened.


"I am not that... I would rather much more of the contrary opinion," Rainer Bruederle said Reuters on the sidelines of the meeting of an internal parliamentary group of the free Democrats (FDP) in Berlin.


"Our goal instead must be to strengthen Europe."


On Saturday, fellow FDP MP Frank Schaeffler said that Germany should support constructive Athens way if he chooses to leave the euro zone.


Schaeffler was joined by Ifo Institute President Hans - Werner Sinn, who said Sunday weekly Frankfurter Allgemeine Sonntagszeitung (FASZ) that a Greek exit is preferable to permanent tax transfusions from German coffers.


In addition, by pursuing austerity simply remain in the euro area, Athens condemns its population a brutal internal devaluation through spending on wages, bringing potentially and low.


"The country and then almost come to a State of civil war," he said the paper, comparing the situation in the crisis of the Weimar Germany, when the deflationary policy of Chancellor Heinrich Bruening contributed to Nazi power.


Clemens Fuest of Oxford University, who is also a Senior Advisor to the German Finance Ministry, has pleaded for a restructuring Athens considers that the abandonment of the euro.


"Output is feasible in principle", Fuest has told the FASZ.


"But the first step to resolve the problem of debt in the euro area must be a hair cut." Then one can think on the question of whether the Greece wants to stay in the euro area. ?


Speaking at the Reuters news agency, Bruederle, said Greek time to run their reforms, something rendered more difficult by market constant talk about a possible debt restructuring and now exit from the euro area.


"That the Greeks have a hard road before one of them is a secret," said the Minister of the German economy.


"Speculation day and out only leads to speculation more and not strengthen Europe."


Bruederle also criticised as "irritant" policy of communication surrounding a meeting Friday of the main Finance Ministers of euro area at the Luxembourg, the first time by Spiegel Online only to be subsequently refused as "totally wrong" by the spokesman of the President of the Eurogroup Jean-Claude Juncker.


An official of the Government on Saturday, said that the meeting was only informal and as such was not empowered to make decisions about the Greek crisis.

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