The German Finance Minister Wolfgang Schaeuble, in an interview with Bild newspaper appeared negative on the possibility of a new haircut on the Greek debt. “We had a debt reduction in late 2011 – early 2012, and that’s enough,” said Schaeuble who didn’t rule out a third bailout for Greece.
Schaeuble added, “Greece has bigger problems than the other countries in recession, therefore it will take longer for the country to stand on its own feet. With this as a given we had said, when adopting the current program and again before the election, that after the expiry of this program at the end of 2014, we will see if we should support Greece again, and if the country has met its obligations.” He also said that any new package would be “a much smaller amount” than the current one, and that it would not include a new haircut.
Schaeuble claimed that the exit of Ireland and Spain from support programs is a proof that “the European policy linking the aid programs with reforms, is successful.”
When asked about the prevention of a possible new economic crisis in Europe, he replied that it can be achieved “by the consistent continuation of policy reforms.” He said that countries in crisis must put their budget in order, and continue with structural reforms. Europe can abolish the risk of a new crisis if it is strong and competitive.