The German government is reportedly calculating the economic cost of a Greek exit from the eurozone, as Chancellor Angela Merkel prepares to meet Greece’s prime minister in Berlin for talks on Friday.
by Szu Ping Chan
A special working group, led by deputy finance minister Thomas Steffen, is working on scenarios in the case that Greece is forced to withdraw from the 17-nation bloc, the Financial Times Deutschland reported on Friday.
“Colleagues are making calculations about the financial consequences [of an exit] and are considering how a domino effect on other euro member states might be prevented,” it quoted a finance industry source as saying.
The ten-member working group, which is made up of officials from various finance ministry departments, wanted to be fully prepared for a possible “negative scenario,” the source added.
Last week, German finance minister Wolfgang Schaeuble said it would be “stupid” not to make contingency plans in case Europe’s rescue efforts failed, adding that the debt crisis must not become a “bottomless pit” for Germany.
Reposted from http://financialsurvivalnetwork.com/