Alexander Dobrindt, who is he general secretary of the the CSU, the Bavarian sister party of Merkel’s CDU urged the European Commission to prepare the legal ground that will allow for a legal bankruptcy of one of the euro-zone’s member states and its exit from the monetary union.
Dobrindt, gave an interview to Die Welt am Sonntag and clearly stated that “the greatest risk for the euro is still Greece.”.
It is important to note that Germany is in an election year. Merkel has tried to keep the debt crisis away towards the elections in September, and Dobrindt might be trying to gain support.
This statement is not his first inflammatory one: he already suggested Greece to prepare for a “Grexit” by paying 50% of pensions and salaries in drachmas. Needless to say, this remained a statement and nothing more than that.
It has recently been revealed that Greece received an airlift of cash during the peak of the crisis: money was secretly shipped by air in order to respond to the demand of cash, as Greeks feared a euro-exit.
Greece has stayed out of the spotlight since the recent buyback program in the fall, that further reduced its overall debt. However, the economy is still suffering badly, with unemployment above 26% and a non-stop recession for years, which is turning into a depression.
This statement could weigh on the euro, that has managed to survive a triple bottom. For more on the single currency in terms of levels, analysis and events, see the EURUSD forecast.
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