Managing Director International Monetary Fund (IMF), Christine Lagarde, does not rule out that Greece still be headed toward bankruptcy and have to abandon the euro and the European Union, according to an excerpt from an interview with CBS which airs this Sunday.
According to Lagarde, “there is still medicine to take and that’s what happens in most southern states of the eurozone, plus Ireland”, while not ruling out the possibility that Greece can not avoid bankruptcy and look forced to leave the euro and the EU, according to an excerpt of the interview in advance for CBS.
The full interview can be seen on Sunday and is part of a report of “60 minutes”, which also involved the German finance minister, Wolfgang Schäuble, who says that Germany has become the “scapegoat” of the Greek press.
When asked about the rising antipathy among many German politicians Greeks, Schäuble said it is a normal reaction to a difficult situation, after Greece had to submit to harsh reforms and cuts beset by a debt that is largely creditors in the hands of Germans.
“It’s always like, when you have countries and people who have been living beyond their means and now have to implement austerity, cutbacks and reforms in its labor market, in this situation tend to blame others, look for scapegoats, but same time they know that their prosperity is thanks to Europe “, said Schäuble.
The set of the CBS interview focuses on the Greek crisis and the causes that led to this small European economy to jeopardize the entire Eurozone due to public debt equivalent to 168% of its Gross Domestic Product (GDP) .
As a condition of the bailout programs of the European Commission, the European Central Bank and IMF, Athens has had to compromise to harsh adjustment measures which have led to cuts in pensions, wage cuts, the dismissal of 150,000 and raises taxes.
Category: Business News