With all the friendly summits lately, with Angela Merkel being called the “yes frau” instead of the “no frau”, we haven’t seen much of him in recent days. But now Germany’s stern Finance Minister is again making his appearance.
Wolfgang Schauble has said in an open letter to German lawmakers belonging to his own Christian Democratic Party that the Greek debt crisis isn’t over. He insists that more discipline is required of the Greeks.
Wolfgang is perfectly in sync with Moody’s in London that downgraded Cyprus’s debt recently because of its exposure to Greece. He also agrees with Standard and Poors that calls Greek debt “deep junk” and not just “junk” and Fitch’s that issued a warning on Friday that Greece was in selective default.
Wolfgang the spook that Angela Merkel drags out of the closet when she wants to scare people said that Germany won’t write “blank checks” for the Euro Zone bailout fund.
He’s gotten what he wanted in the beginning — a bond restruturing for Greece and maybe even a haircut. But he thinks that it’s all necessary to get past it and get Greece back on the road to financial stablization. The method? Austerity, discipline, and sacrifice.
The euro according to Wolfgang Schauble is beginning to sound very Germanic.