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Juncker Warns of Euro Zone Breakup, Accuses Germany of “Populism” in Case of Greece

 Chief of euro group Jean-Claude Juncker warned that the euro zone would break apart and urged the EZ and EU leaders to save the currency union saying ‘there was no time to lose. Speaking to German Sueddeutsche Zeitung,  Juncker also criticized German officials for their statements about a Greek euro exit. In case of Greece populism is diagnosed as being particularly pronounced, said Juncker adding, “One should not even speak of a withdrawal hypothesis only in order to support cheap domestic political discourse.”

Juncker: “Why does Germany treats the Euro Zone as if it was [a German] branch?”

Below Juncker’s interview excerpts from English edition of  DER SPIEGEL:

 “We have arrived at a decisive point,” Juncker told German newspaper Süddeutsche Zeitung. “The world is talking about whether the euro zone will still exist in a few months.”

“There is no time to lose,” Juncker added. “We must now make abundantly clear with all available means that we are firmly determined to guarantee the financial stability of the currency union.”

Juncker also said the euro countries, together with the temporary bailout fund EFSF and the European Central Bank, were preparing to purchase government bonds of struggling euro-zone member countries.

“It still has to be decided what we’re exactly going to do when,” he said. This depends on “the developments in the next few days and on how fast we have to react.”

Luxembourgs’ PM Juncker slammed Germany, saying it was Germany partly to blame for the escalating crisis. Refering to repeating statements by German officials about a Greek euro exit, Juncker stressed that “chit chat about a Greek exit wasn’t helpful.

He said Germany was partly to blame for the escalating crisis. The country was affording itself “the luxury to conduct domestic policy regarding euro issues,” he alleged. In an indirect criticism of German Economy Minister Philipp Rösler, who said last week that a Greek exit had lost its “horrors,” Juncker said “chit chat” about a Greek exit wasn’t helpful.

He said Greece had a duty to deliver on the reform pledges it made in return for international aid. But its exit from the euro zone would not solve the bloc’s problems. “On the contrary. The reputation of the euro countries around the world would be significantly damaged, and there would be enormous consequential damage,” he said. ( Spiegel/English)

I wouldn’t exclude Finance Minister Schaeuble from Juncker’s criticism, but whatever….

 
 
 

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