Eurogroup struggles with ‘unsolvable dilemma – Financieele Dagblad (Registration)

Wolfgang Schaeuble

Dutch Height

An insoluble dilemma,” German Finance Minister Wolfgang Schaeuble takes it for a responsible politician to answer the question whether they are working on ‘plan B’ for Greece. That is the fallback option if no agreement is reached on the continuation of support to the Eurozone and Athens can no longer meet its obligations.

Questions about whether there are alternatives if the world stops turning or if everything fails differently than you want, despite the best intentions, should not really be put to a politician who bears responsibility, “said the German doyen of the Eurogroup Saturday after of two-day meeting of finance ministers in Riga.

Eurogroup is not working on Plan B

It is not done by the Eurogroup in any event to plan B, says chairman Jeroen Dijsselbloem Saturday. But during the meeting of the Eurogroup in Riga on Friday there by “some countries” have talked about, ‘from their concern over lack of progress and the attitude to Greek side’

‘Er been said if it continues as we get really into trouble. In that context, called Plan B, but there’s not talked about and we did not talk about the Eurogroup. It was only meant as a warning to the Greek Minister: you have to move, otherwise you go to the edge of the completed “

Game over ‘

Schäubles’ insoluble dilemma is that the recognition that there is a Plan is working to reduce the impact of a Greek collapse and a possible subsequent ‘Grexit’ catch, that just might trigger and could even make irreversible. “Then you say, it’s game over,” says an official. ‘Plan B even mention is profoundly anti-European, “Varoufakis finds itself.

On the other hand, it would be just as irresponsible central bankers and finance ministers as they are not prepared for such a calamity. If other weaker euro countries are not shielded from a Greek

default, the perception of a ripping eurozone financial markets unpredictable reactions à la Lehman could result.

Dijsselbloem circumvents the dilemma now by saying that Grexit for him is not an option and that the word is not fallen, but he is always prepared for all eventualities

Herhaling of putting

The meeting in Latvia delivered as expected little more than a repetition of views, concerns and warnings. Greek Finance Minister Yanis Varoufaskis was penetrating and critical maintained by all his 18 colleagues on the lack of progress in talks on the obligations to take Greece in return for continued support.

De euro countries and the IMF have € 7.2 billion ready, but the velengde program runs from June 30 and Greece gets it when it has all appointments performed.

An impasse in the negotiations, which among other stuck on the required reduction of pensions according priceless Dijsselbloem, the required size of the Greek budget surplus and the required privatization, is a familiar phenomenon. This includes a ‘good cop – bad cop’ roles at. Not Schäuble, but especially his Slovak and Slovenian colleagues raised their frustration not hide.

Capital Constraints

But the German minister’s annoyance over. “The situation in Greece is as it is.” Of course everything is done to avoid deferral by Athens. But the euro countries Greece, for example not impose capital controls. That is their own responsibility, says Schäuble therewith, as Dijsselbloem did earlier at BNR, this surgery as part of ‘Plan B’ suggested.

That does not necessarily mean the end of the membership of the euro, evidenced by the fact that Cyprus previously made in connection with a bank run. Meanwhile, she lifted again and gets compliments Cyprus for the exemplary manner in which it has left the crisis behind him by meeting without a murmur to the requirements of the eurozone countries and the IMF.