FXStreet (Mumbai) – Speaking to the German Deutschlandfunk radio on Thursday, German Finance Minister Wolfgang Schaeuble openly questioned Greece’s future inside the euro area, repeating that a temporary exit from the currency zone would be the best option for the debt-ridden country.
Schaeuble noted, “Perhaps it would be the better path for Greece.”
He stressed that the country’s situation is “extraordinarily difficult” given its ultra-massive debt obligations.
On bailout, he further added, “I don’t know, nobody knows at the moment how this should be possible without a haircut. And everybody knows that a haircut is incompatible with a membership in the monetary union,”
“But we will take up negotiations (about a third bailout), we will make any effort, but we must respect the rules.”
German Minister further added, “We will now see in the negotiations whether there is even a way to get to a new program taking into account (Greece’s) financing needs, which have risen incredibly.”
(Market News Provided by FXstreet)