Bundesbank: Eurozone Can Handle Greek Reform HaltMay 23rd, 2012 11:36 am Associated Press
BERLIN (AP) — Germany’s central bank says the 17-country eurozone would be able to cope with Greece failing to implement austerity and reform promises.
Greece is holding new elections next month after last month’s vote failed to produce a government. In the May 6 election, opponents of painful cuts creditors have demanded in exchange for rescue loans made big gains.
Germany’s Bundesbank wrote in its monthly report, published Wednesday, that the situation in Greece is “highly worrying” and pointed to a danger that the country might not implement its promises, meaning future aid would be at risk.
It says that “Greece would have to carry the consequences,” without specifying what they were.
Though conceding that the challenges would be “significant,” it says they are “manageable” under careful crisis management.