German Finance Minister Wolfgang Schaeuble, who has continually been warning Greece to impose more austerity measures and make more spending cuts, said there will be no third bailout for the cash-strapped country.
Greece is surviving on a first series of $152 billion in rescue loans from international lenders and awaiting a second for $173 billion, but Schaeuble said no more money will be forthcoming, even to keep Greece from default.
Before meeting Greek Finance Minister Yiannis Stournaras, Schaeuble told the German Inforadio that the largesse for Greece has ended, and said that he believes that the Eurozone of the 17 countries who, including Greece, use the euro, will survive even if Greece fails. Greek Prime Minister Antonis Samaras’ uneasy coalition government is set to present a $14.6 billion spending cut plan to the Troika of the European Union-International Monetary Fund-European Central Bank (EU-IMF-ECB) which is withholding further aid until he does.
In the interview, he said that the euro will be more stable next year but there will still be difficulties. “Next year, the euro will cause less anxiety in the stock markets. It will not be problem-free though,” he said. Schaeuble, a hard-liner on Greece, said the Eurozone’s problem was a loss of confidence that will take time to restore.
When asked about Greece and it’s future in the Eurozone, he said he believed Greece would remain a member, although a number of other German politicans disagree and said they want the country to be forced out because of the problems it has brought to the financial bloc. He said Greece, which has continually broken promises to make reforms, has benefited from the patience of its lenders and the international community and needs to prove itself, and that a report from Troika envoys will determine whether the country gets the second bailout.