RIGA, LATVIA – The Wall Street Journal reported on April 25 that some Eurozone finance ministers at the Eurogroup meeting taking place in Riga, the capital of Latvia, were openly talking about a “Plan B” for Greece if an agreement is not reached by the end of June
“The statements by the finance ministers of Slovenia and Germany break a long-held taboo during Eurozone crisis talks, where policy makers have been insisting that they are entirely focused on keeping Greece in the currency union with the help of more bailout loans,” but with “technical discussions on future support all but stuck despite big debt repayments looming in July and August, some politicians are starting to look at alternative scenarios,” the WSJ writes.
Dusan Mramor, Slovenia’s finance minister said “What my discussion was about is what we will do if…the new program will not be achieved in time for Greece to be able to finance itself and improve liquidity.”
But Mramor denied that a failure to reach a new bailout deal by then would entail be an automatic exit of Greece from the Eurozone. “A ‘Plan B’ can be anything,” said Mramor, who reportedly has the support of finance ministers of Slovakia and Lithuania.
German Finance Minister Wolfgang Schäuble’s statement was described as “more oblique” to questions about Plan B.
“Of course there’s sufficient fantasy to imagine what kinds of things could happen…But if a responsible member of the Eurogroup, or any responsible politician, were to answer this question with ’yes,’ we know what would happen. If he answered it with ’no,’ which I have done here by not even accepting the question, then we know that you won’t believe me.”