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53% of Germans want Greece out of the European Union

15 February 2010 / 10:02:06  GRReporter
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53% of Germans believe that if it is necessary then Greece has to leave the European Union, and 67% are strongly opposed for Germany to help Greece to financially the country in getting out of the economic crisis. The study was published in the Sunday edition of Bild newspaper. Meanwhile, the Sunday edition of Die Welt newspaper published an interview with Harvard professor and former officer of the International Monetary Fund Kenneth Rongoff, who warned that Germany may have the fate of Greece. "Public finances in Germany cannot long be maintained in their present condition. A day will come when you will have the Greek problem, maybe not in the same scale, but it will be painful," said the economist. At the same time Rongoff believes that financial support for Greece was imminent. "Until Germany is ready to expel Greece from the eurozone, it will have to help the country financially," he explains.

Kenneth Rongof statements, and Bild’s study were published at a time when Europe's scenario for financial aid for Greece yields concrete outlines. According to sources from the German Ministry of Finance, cited by Greek media, the governments in Berlin and Paris will require the Germanic and French state financial institutions to purchase Greek securities, in order to show to international markets that there is German and French shield over Greece. The same German and French state financial institutions will be required to purchase additional Greek government securities, if international markets are not interested in them. We are talking about the so-called Mexican solution, i.e. the way the United States rescued Mexico in the 90s. Moreover, Germany and France, and other willing European countries of the EU, will increase the capital of the European Investment Bank with €25 billion and subsequently the bank will buy Greek securities of the same value.

All these details will be discussed today, Monday at a meeting of finance ministers from the eurozone and on Tuesday at a meeting of the finance ministers from the European Union, in an extremely tense atmosphere and growing public disapproval of European financial aid to Greece. In an interview for Sued Deutsche Zeitung, the president of Eurogroup Jean-Claude Juncker acknowledged that the eurozone has made a big mistake with Greece and that henceforth will be much more careful with the competitiveness of countries in the eurozone. "If Greece leaves the eurozone, the consequences for it will be equivalent to a devastating earthquake. There will be consequences for other eurozone countries as well," said Juncker. "We will not leave the Greeks alone. We will constantly want to know how far they are with the reform program," threatens the famous right-wing convictions economist.

Tags: Eurozone Greek economy Jean Claude Juncker European Union
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