Roesler: Greek debt relief would hurt German budget
Baku, November 6 (AZERTAC). German Economics Minister Philipp Roesler rejects having official creditors renounce claims on Greece`s debt, arguing this would blow a hole into Germany`s budget and potentially endanger the country`s top credit rating.
Mr. Roesler, of the business-friendly FDP party in Germany`s center-right governing coalition, told business magazine Wirtschaftswoche that Greek debt forgiveness from official creditors "would ultimately also bleed through to the federal budget and this gap" would need to be filled. Furthermore, Germany "itself can`t miss its [budgetary] targets, rather must remain an anchor of stability and solidity in the euro zone." Germany is the largest economy in the 17-nation euro zone and its sovereign paper is regarded as one of the most trustworthy on the continent. Investors` faith in the country has allowed it to benefit from the euro-zone debt crisis as "safe haven" capital flows have driven down the country`s borrowing costs to historically low levels.
Euro-zone leaders are currently pondering ways to help Greece emerge from its multiyear economic and debt crisis. One possible solution would have the country`s official creditors, including fellow euro-zone members, agree to renounce some of their claims on Greek debt holdings.
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