Merkel warns: another Greek Debt Haircut would destabilize the euro zone

Posted by in Economy

OK, the Germans repeat it once per day until we consolidate their policy: no second debt write down. A second debt restructure could cause trouble to recent stabilization of the euro zone area, Chancellor Angela Merkel said on Friday. A day after her Finance Minister Wolfgang Schaeuble expressed the same opposition while visiting Athens.

 Merkel in Warning Over Another Greek Debt Haircut

German Chancellor Angela Merkel is warning that a second debt writedown for Greece could undo much of the recent work done to stabilize the euro area.

Merkel’s comments Friday came a day after her finance minister visited Athens and told a Greek audience that it’s not in the country’s interests to seek a second write-off, or “haircut,” following last year’s debt restructuring with private-sector bondholders.

Merkel pointed to the possible consequences of another writedown in the 17-country eurozone and the danger that others might seek a similar deal. Portugal, Ireland and Cyprus have also received bailouts.

She said another debt relief deal “could lead to such massive uncertainty among all investors in the eurozone that everything we have done in recent years would again be in question. (AP via ABCNews)

PS Following the German tactics “learning through repetition” I repeat for one more time: Greeks are incredible proud to save the euro zone :)