Eurozone no longer has to rescue Greece: Merkel ally

Eurozone no longer has to rescue Greece: Merkel ally

Thu Jan 1, 2015 5:15AM GMT

A senior German lawmaker has warned that Europe is no longer obliged to rescue Greece in the face of economic problems as the country has lost its “systemic relevance” to the eurozone.

Michael Fuchs, the deputy parliamentary leader of Chancellor Angela Merkel’s conservatives, accused Greek politicians of “blackmailing” their partners in the currency bloc.

“If Alexis Tsipras of the Greek left party Syriza thinks he can cut back the reform efforts and austerity measures, then the troika will have to cut back the credits for Greece,” he told Rheinische Post newspaper on Wednesday.

“The situation is entirely different than three years ago,” Fuchs said, adding, “The times where we had to rescue Greece are over. There is no potential for political blackmail anymore. Greece is no longer of systemic importance for the euro.”

The comments came after the parliament in Greece was dissolved on Wednesday after Prime Minister Antonis Samaras requested the dissolution of the legislature following its failure to choose a new president after three successive rounds of voting.

Samaras warned that cash-strapped Greece may be forced out of the eurozone if the anti-austerity Syriza, currently the front-runner in polls, wins the elections next month.

Syriza has pledged to unwind many of the reforms, including cutting taxes and increasing state aid and public services, imposed by the so-called “troika” of the International Monetary Fund, European Union and European Central Bank.

Greece has been relying on international rescue loans since 2010. It has received 240 billion euros (USD 330 billion) in international loans. In exchange, Athens has implemented harsh austerity measures.

Greeks have lost about a third of their disposable income since the debt crisis erupted in 2009. The unemployment rate has also soared, leaving about one in four without a job.

One comment

  • theunhivedmind

    What is the immediate answer for Greece? A full blown Greek exit from the European Union and Eurozone. Greece should then immediately print their own credit currency up or choose to us the Chinese Yuan. Greece should then immediately join the BRICS Development Bank and the SCO organizations. If Greece goes this route it will become wealthier and be able to feed its people again. Under the Troika poor Greece has been robbed and destroyed of its wealth and dignity. It is time for the Greeks to take back their nation and become sovereign in union with the Russian Federation and China. The Greek economy should look to China for help like Argentina has been doing. This will really annoy the Nazi EU.

    -= The Unhived Mind

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