Wolfgang Schäuble against Greek Haircut

German Minister of Finance Wolfgang Schäuble (CDU) speaks during an interview which he gave to West German Allgemeine Zeitung on the last Friday, of the fact that meanwhile the finance plight of Greece could become dangerous for the whole euro-space. In his view it depends on the persuasive solution of this problem whether the international market again catches trust to the euro all together.
At the same time the federal Minister of Finance drew the attention to the fact that the German economy, in spite of all present problems, profits massively from the communal currency. Nevertheless, for the debt cut demanded by many experts, the so-called “Haircut”, for Greece Schäuble might not plead at the momentary time.

With it the Minister for Economic Affairs is in contrast to the economic manner Neither Tu Mauro who expressed himself quite clearly for the steady reduction of the state debts of Greece around a high percentage. He recommends that the EFSF (European rescue screen) offers to all Privatgläubigern to buy back the griechisichen state loans for the present market price which lies 50% under the nominal value of the loans. Then new, with guarantees of the eurocountries provided loans should be given. A such offer should be made at a later time also to the investors who own Portuguese and Irish state loans.

Wolfgang Schäuble also expressed himself against common state loans of the eurocountries. This would offer to states high in debt not the necessary incentive for savings by which they can realise a lower level of interest rates for her loans. To gain control of the European financial crisis, stricter rules should be implemented rather, also for rating agencies. These had contributed during the past weeks in particular by her negative assessment of Portugal massively to an increase the euro of crisis.