Schaeuble had a plan to kick Greece out of eurozone, says Geithner

Schaeuble had a plan to kick Greece out of eurozone, says Geithner


Review Hari Stefanatos

The German plan for Greece’s exit from the Eurozone had been presented in late July 2012, by the German Finance Minister Wolfgang Schaeuble to the then U.S. Treasury Secretary Timothy Geithner, according to what the latter states in his book «Stress Test», which was just released on USA.

The Geithner in his book, says that during a trip to Europe he visited the island of Sylt in the North Sea, to meet the German Minister of Finance and that Mr Schäuble had said that there are many in Europe who continue to believe that kicking Greece out of the eurozone was a reasonable and even desirable strategy.

According to Geithner, Schäuble’s argument was that with Greece out of the eurozone, Germany could provide the financial support needed by the Eurozone, partly because the German people would not have perceived helping Europe as a support the Greeks, and also because the Greek exit would have terrified Europe enough in order to proceed to the creation of a stonger protection measures.

The former Treasury Secretary describes this argument as “scary”.

Meanwhile, in his book he writes that European officials had sought the support of Washington to force Silvio Berlusconi to resign in autumn 2011.

The external pressures , in which Geithner argues the U.S. refused to join, eventually led to the November 11, 2011 to the resignation of Berlusconi as prime minister of Italy.

Elsewhere in the book, the American former Finance Minister describes that he recommended to the Europeans not to let the crisis get out of control.

“If they wanted to continue to step on Greece’s throat, they had, at the same time, to reassure markets that they would not allow the bankruptcy of states and the collapse of the entire banking system”, he states characteristically.

(Source: Enet)