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Greece could ask for bail-out number three: German finance minister warns previous rescue packages worth £205BILLION won't be enough
By HUGO DUNCAN PUBLISHED: 22:45 GMT, 20 August 2013 | UPDATED: 23:20 GMT, 20 August 2013
Debt-riddled Greece will need a third bailout as the crisis in the eurozone rumbles on, German’s finance minister declared last night.Wolfgang Schaeuble, one of Chancellor Angela Merkel’s most powerful allies, warned that the previous rescue packages totalling £205billion will not be enough to save the stricken country.‘There will have to be another programme in Greece,’ he said.
Trouble: Greece could need yet more bail out money, it has been warned
His warning was echoed by former Greek Finance Minister George Papaconstantinou who said a further bailout could be required.
Warning: German Finance Minister Wolfgang Schaeuble said Greece's £205billion will not be enough
The comments triggered alarm across the single currency bloc and made a mockery of claims that the crisis in the eurozone is over.
Official figures last week showed the eurozone economy grew by 0.3 per cent between April and June ending 18 months of recession.However, the recovery was driven by Germany, and countries such as Italy, Spain, the Netherlands and Greece remained stuck in the mire.Unemployment is at or close to record highs across the region with millions of youngsters out of work.The prospect of a third Greek bailout has been something of a taboo subject in Germany ahead of elections next month.
Ms Merkel has tried to keep Greece out of the campaign to avoid angering Germans who fear they will be forced to foot the bill.It is thought that Greece will face a new funding shortfall at the end of 2014 when the current rescue package expires.But a third rescue package is likely to be far smaller than the first two.Former Greek Finance Minister George Papaconstantinou told BBC Hardtalk: ‘There could be a need for another bailout.’
Debt-riddled Greece will need a third bailout as the crisis in the eurozone rumbles on, German’s finance minister declared last night.Wolfgang Schaeuble, one of Chancellor Angela Merkel’s most powerful allies, warned that the previous rescue packages totalling £205billion will not be enough to save the stricken country.‘There will have to be another programme in Greece,’ he said.
Trouble: Greece could need yet more bail out money, it has been warned
His warning was echoed by former Greek Finance Minister George Papaconstantinou who said a further bailout could be required.
Warning: German Finance Minister Wolfgang Schaeuble said Greece's £205billion will not be enough
The comments triggered alarm across the single currency bloc and made a mockery of claims that the crisis in the eurozone is over.
Official figures last week showed the eurozone economy grew by 0.3 per cent between April and June ending 18 months of recession.However, the recovery was driven by Germany, and countries such as Italy, Spain, the Netherlands and Greece remained stuck in the mire.Unemployment is at or close to record highs across the region with millions of youngsters out of work.The prospect of a third Greek bailout has been something of a taboo subject in Germany ahead of elections next month.
Ms Merkel has tried to keep Greece out of the campaign to avoid angering Germans who fear they will be forced to foot the bill.It is thought that Greece will face a new funding shortfall at the end of 2014 when the current rescue package expires.But a third rescue package is likely to be far smaller than the first two.Former Greek Finance Minister George Papaconstantinou told BBC Hardtalk: ‘There could be a need for another bailout.’
