German Finance Minister Prepares for Possible Greek Bankruptcy

With doubts growing about Greece's ability to implement important savings measures and reforms, there are concerns that insolvency may be inevitable. In Germany, officials in Wolfgang Schäuble's Finance Ministry were siad to be exploring in early September 2011 what Athens' financial collapse would mean for the euro zone.

However, German Chancellor Angela Merkel sought to calm market nerves over a possible Greek debt default, saying on the 13 september 2011 that the eurozone must stick together.
The collapse of Greece and its exit from the euro would have a domino effect, she told German radio.

• Primary Source

ESO: Background information: German court upholds eurozone rescue / Merkel promises ‘euro will not fail’ http://www.europeansources.info/record/german-court-upholds-eurozone-rescue-merkel-promises-euro-will-not-fail/

Kathimerini, 9.9.11: Germany adds investment card http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_16017_09/09/2011_405640

Kathimerini, 12.9.11: Germany doubts, Greece insists http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_18739_12/09/2011_406015

PressEurop, 13.9.11: Worst case scenario for euro approaches http://www.presseurop.eu/en/content/press-review/944461-worst-case-scenario-euro-approaches

The Economist, 12.9.11: Blog: Charlemagne: Time is running out http://www.economist.com/blogs/charlemagne/2011/09/euro-crisis

BBC News, 13.9.11: Angela Merkel tries to allay Greece default fears http://www.bbc.co.uk/news/business-14894774

Deutsche Welle, 13.9.11: Merkel warns leaders to watch their words on Greek debt http://www.dw-world.de/dw/article/0,,15382833,00.html

Deutsche Welle, 13.9.11: Europe worried over potential fallout of Greek bankruptcy http://www.dw-world.de/dw/article/0,,15382978,00.html

Spiegel Online International, 13.9.11: Loose Talk on Greek Default Could 'Cost Billions' http://www.spiegel.de/international/europe/0,1518,786032,00.html

EurActiv, 12.9.11: Merkel coalition rattled by calls for Greek euro exit http://www.euractiv.com/euro-finance/merkel-coalition-rattled-calls-g-news-507533

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