Germany preparing for Greek default
As European finance ministers meet to weigh in on the latest round of loans for Greece, German Finance Minister Wolfgang Schauble is preparing for what could be the inevitable – a Greek default.
According to the Sydney Morning Herald, Schauble believes that cuts brought on by austerity plans are too severe for any government to implement them.
One Euro zone official told the paper that Schauble that even if Greece can make the necessary cuts, it may not be enough to rescue their economy.
”The idea instead is that the Greek government should officially declare itself bankrupt and begin negotiating an even bigger cut with its creditors. For Schauble, it is more a question of when, not if,” the official said.