Breaking News

Citigroup Profit Falls 96% on Costs to End Mortgage-Bond Probe
Tweet TWEET

Greece Should Be Prepared to Abandon Euro, German Lawmaker Schaeffler Says

German government lawmaker Frank Schaeffler said Greece should be prepared to leave the euro region if it can’t push through enough austerity measures to cut its budget deficit, Handelsblatt said, citing an interview.

“If Greece can’t push through these savings measures, it must voluntarily leave the eurozone,” the newspaper cited him as saying in an interview. The government needs to step up its deficit-cutting measures “significantly,” said Schaeffler, who is deputy finance spokesman for the Free Democrat Party. The FDP is a junior partner in Chancellor Angela Merkel’s coalition government.

Leaving the euro would allow Greece to devalue its new currency and would in the short term help it improve its competitiveness, Schaeffler told Handelsblatt.

To contact the reporter on this story: Gabi Thesing in Frankfurt at gthesing@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.