According to Deutsche Welle, the German Minister of Finances Wolfgang Schäuble gave an interview to daily newspaper Bild where he appeared to be negative towards the possibility of a new haircut of the Greek debt.
Mr. Schäuble claimed that since Greece has greater problems than other countries suffering from the crisis, need more time is necessary to recover. To than end, the German minister explained that in mid 2014 there will be a discussion as to whether Greece needs further help in the form of a new bailout, rejecting the possibility of a haircut.
The German Minister commended Ireland and Spain for successfully completing their respective bailout programs and stated that while “the worst is behind us”, further work is needed to avoid a relapse. Mr. Schäuble explained that he was in favor of continuing with reforms, since only a “competitive Europe” will come out strong and resilient from a crisis.
When asked about debt-ridden banks, the German Minister explained that there will be regulations that will outline how shareholders and creditors address such problems, with the ultimate goal being the protection of taxpayers.
