The German newspaper Die Welt has reported that with speculation still rampant Greece will get a write-down in its debt to international lenders, including Germany, after that country’s elections next month, that the idea of Greece leaving the Eurozone yet should not be discounted nor considered taboo.
The paper pointed out, among other things, that unless the Troika of the European Union-International Monetary Fund-European Central Bank renounces some of what it is owed that Greece will never recover because its’ $390 billion debt is insurmountable despite two bailouts of $325 billion.
“The German government questions the very obvious data and denies to discuss now for the possibility of a new aid. Because with a new haircut, the until now guarantees would immediately convert into losses of billions for the taxpayer here,” the paper said. That means the taxpayers in the other 16 Eurozone countries will foot the bill for generations of wild overspending by Greeks.
“And how can somebody explain to the Germans that in Germany, swimming pools should close down, that there are no vacancies in kindergartens, that there are no money to build roads, at the same time that money from the state funds are channeled to Europe’s South? Given that reforms in Greece are not sufficient, the pressures should be intensified,” the paper added.