SPD deputy warns of costly 'Grexit'
January 5, 2015
The SPD deputy party leader and financial politician highlighted that Germany had given almost 240 billion euro in loans to Greece "in order to stabilze them and keep them in the euro."
"If the euro were devolved in Greece and the currency returned to the drachma, Athens would be unable to repay the loans," Schneider told the German Press Agency.
Schneider far from believes the notion that a "Grexit" would be easier to control today than it was several years ago.
"It would all fall apart," Schneider said, "We could, perhaps, save a small country, "but there's absolutely no chance that could we save a large country like Italy or France."
The SPD finance expert also warned Angela Merkel's CDU party against influencing domestic politics in Greece. The SPD and CDU have been ruling Germany in a so-called 'grand coaltion' government since 2013.
"It might be that a left-wing party doesn't suit the CDU, but that's democracy, and they need to get used to it. Under absolutely no circumstance should one give the impression that we regulate who the Greeks have to vote from."
Leftists topping Greek polls
Schneider's comments referred to a report published online by Der Spiegel on Saturday that claimed that the German government is prepared to countenance a Greek exit from the eurozone, should it prove necessary.
European shares and certain eurozone bonds fell further last week after the Greek parliament rejected Prime Minister Antonis Samaras' presidential candidate.
That resulted in Greece deciding to stage a general election on January 25 which could see the opposition party Syriza achieve victory, as polls predict.
The main concern for Germany and the EU, should Syriza win the election, is that the party leader, Alexis Tsipras, has vowed to reverse the reforms insisted upon by Greece's international creditors, which include the EU and International Monetary Fund.
In an interview in the Monday edition of the "Hannoversche Allgemeine" newspaper, however, German Economy Minister Sigmar Gabriel denied that Berlin was making any emergency plans for an potential "Grexit."
"The goal of the German government, the European Union and even the government in Athens itself is to keep Greece in the eurozone," Gabriel said, noting that the common currency area had become more stable in recent years.
ksb/rg (Reuters, AP, dpa)