The German Minister of Finances Wolfgang Schäuble estimated that the imposition of capital controls on Greece, in an effort to tackle the financial crisis, was possible. Mr. Schäuble made the estimation in a discussion he had with American professor of economics Kenneth Rogoff, which will be published in the Thursday edition of Die Zeit.
When asked about the likelihood of capital controls being introduced, the German Minister responded that such a decision as the exclusive responsibility of each member state. During the conversation, Mr. Rogoff proposed the imposition of capital controls for five or ten years, in order to consolidate the Greek economy. Nevertheless, the American professor added that such measures are particularly controversial.
Reports suggest that at Thursday’s scheduled press conference, the German Finance Minister will stress that the Greek government must make a decision regarding its future in the single currency union.
