EUROZONE-GREECE/GABRIEL German economy minister: Grexit "catastrophe" for Greece, Europe

Record ID: 150989

  • Title: EUROZONE-GREECE/GABRIEL German economy minister: Grexit "catastrophe" for Greece, Europe
  • Date: 12th June 2015
  • Summary: MUNICH, GERMANY (JUNE 12, 2015) (REUTERS) EXTERIOR UNIVERSITY OF MUNICH VARIOUS OF GERMAN ECONOMY MINISTER SIGMAR GABRIEL ARRIVING FOR ANNUAL ASSEMBLY OF IFO ECONOMIC INSTITUTE PRESIDENT OF IFO ECONOMIC INSTITUTE, HANS-WERNER SINN, TALKING GABRIEL WALKING UP PODIUM VARIOUS GABRIEL SPEAKING AT LECTERN (SOUNDBITE) (German) GERMAN ECONOMY MINISTER, SIGMAR GABRIEL, SAYING: "We
  • Embargoed: 27th June 2015 13:00
  • Keywords:
  • Location: Germany
  • Country: Germany
  • Topics: General
  • Reuters ID: LVA3R4Q6GGTSVY2TQUEMB7PJ64GO
  • Aspect Ratio: 16:9
  • Story Text: German economy minister Sigmar Gabriel said on Friday (June 12) that he was hoping for Greece to remain in the eurozone.
    "I still hope that in these coming days rationality will prevail. What comes after, if Greece doesn't stay within the eurozone, would be a catastrophe for Greece, but also for Europe. Not only financially, it is going to be far more expensive as many of us think today, it is going to change our aggregate state. Grexit today, Brexit tomorrow, the debates about Catalonia and others. We are running a bit the risk of underestimating how strenuous it was for our parents and grandparents to form this Europe", Gabriel told the audience at the annual assembly of the ifo economic institute in Munich.
    The International Monetary Fund dramatically raised the stakes in Greece's stalled debt talks on Thursday (June 11), announcing that its delegation had left negotiations in Brussels and flown home because of major differences with Athens.
    The surprise IMF move came as the European Union told Greek Prime Minister Alexis Tsipras to stop gambling with his cash-strapped country's future and take the crucial decisions needed to avert a devastating default.
    Greece needs a deal to unlock aid before the end of the month when it is otherwise set to default on a 1.6 billion euro ($1.8 billion) repayment to the Washington-based IMF.
    That could trigger capital controls and possibly push Greece out of the eurozone, with unpredictable consequences for financial markets and the European economy.
    At the meeting Gabriel also spoke about the ongoing flood of refugees into Europe. "This is going to cause massive challenges for our country and many others in Europe. One of it in Germany will be to economically assure that cities and regional communities are able to maintain their infrastructure, the development of nurseries, schools, support of youth institutions and clubs and not having to spend all their money on the accommodation of refugees," Gabriel said.
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