Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

German Economy Minister criticises Schaeuble's proposal for temporary Grexit

Published 19/07/2015, 12:20
© Reuters. German Finance Minister Schaeuble speaks with Economy Minister Gabriel during the session of the German lower house of parliament Bundestag in Berlin

BERLIN (Reuters) - German Economy Minister Sigmar Gabriel criticised Finance Minister Wolfgang Schaeuble in a television interview to be broadcast later on Sunday for suggesting that Greece could quit the euro zone temporarily.

Schaeuble has said that Greece could take a five-year "time-out" from the euro zone to address its economic problems, but Gabriel hit out at the idea in a sign of rising tension within the coalition between his Social Democrats (SPD) and Chancellor Angela Merkel's conservatives over the Greek debt crisis.

"In my opinion it wasn't sensible to make this suggestion as a German suggestion," said Gabriel, who is also Vice Chancellor, in extracts of the interview released ahead of broadcast by the ZDF channel.

Gabriel said that Schaeuble, a member of Merkel's conservatives, had provoked the SPD, their junior coalition partner.

"I'd say one should have done that differently, especially as he knew that we Social Democrats are only prepared to talk about Greece leaving the euro zone solely in the case that the Greeks want that themselves," Gabriel said.

While Schaeuble has said the proposal was agreed with the coalition partner, SPD leader Gabriel said he had learned about the details of the proposal only after it had been floated in negotiations in Brussels.

Gabriel also said that Schaeuble was in a "huge conflict" with Merkel, who has said that a temporary Greek exit from the euro zone would not work.

Schaeuble said in an interview published in Der Spiegel magazine on Saturday that he and the Chancellor were "on the same path", even if they did not always share the same opinions.

Gabriel rejected international criticism of Germany over its role in the Greek crisis, saying accusations that Berlin's stance was too tough were not appropriate: "I think that's an unfair judgment. Germany has made a big contribution to all packages and has taken on big risks."

The struggle over Greece's latest debt deal has nevertheless exposed growing rifts within the euro zone.

Gabriel said it would be wrong to take on risks related to Greece without asking the country to make changes because Italy, Spain and Portugal would then have to receive the same treatment and "the euro zone could not survive that".

© Reuters. German Finance Minister Schaeuble speaks with Economy Minister Gabriel during the session of the German lower house of parliament Bundestag in Berlin

He said there was a good chance Athens would implement the reforms. "Then it will be proved that this path is right," he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.