2015

Berlin Supports Greek Membership in the EU

Berlin to back Greece remaining in the Eurozone, even in case of bankruptcy

April 17th, 2015
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Izabella Sipos - The Federal Government (Die Bundesregierung) declared on April 15th that it intends to keep Greece in the eurozone, even if the struggling nation were to go bankrupt.

Germany is afraid that Greece’s economic difficulties will see the European Central Bank challenge its use of the euro. However it is Germany’s belief that the Greek banks should be supported and backed up by the European Central Bank, so they would have a way of surviving after the bankruptcy. In return, Greece would have agree on and contribute to significant reform.

After the 2015 Greek Election, the Coalition of the Radical Left came into power. Germany-Greek relations have since worsened, as Greece struggles to commit to its terms agreed as part of the economic rescue package. Syriza has since declared that the “debt repayment in full is unrealistic“.

Athens’ financial support was to end in 2014, however, the second package was then extended until June, by more than seven billion euros. The Greek Government does not have access to the money until they show detailed plans for reform and repayment

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