Greek bankruptcy less likely to contaminate eurozone: minister

While it would be preferable for Greece to remain within the Eurozone, enough measures have been taken that ‘we could deal with such a departure’, prime minister Mark Rutte said on Tuesday.


The prime minister was reacting to comments in the Volkskrant by Dutch EU commissioner Neelie Kroes, who said Greece can leave the eurozone without damaging monetary union.
Eighteen months ago, the effect would have been much more serious, but measures such as the emergency fund and recapitalisation of banks have made the eurozone stronger, Rutte told Radio 1.
Earlier finance minister Jan Kees de Jager made a similar point. If Greece does go bankrupt, the consquences for the rest of Europe are not insurmountable, De Jager told MPs.
Promises
De Jager reiterated that it is up to the Greeks themselves to ensure the country stays afloat. ‘But the measures we have taken ensure the risk of the rest of Europe becoming contaminated has been reduced,’ he said.
In the interview Kroes is very critical of the new Greek government and says they are not fulfilling their promises. ‘Too few spending cuts, too little restructuring,’ she says.
She says the Greeks should follow the example of Italy where the new prime minister Mario Monti is taking ‘dynamic action’. ‘And it is creating just as much pain in Rome as it is in Athens,’ Kroes told the Volkskrant.
Reactions
Kroes’ statement was immediately welcomed by the Socialist Party and anti-Islam PVV. PVV leader Geert Wilders used the microblogging service Twitter to state he is delighted the commissioner has adopted the PVV standpoint.
However, Labour’s finance spokesman Ronald Plasterk said he wondered if Kroes’ statement is aimed at adding further pressure on Greece to reform. If so, it is a risky strategy, he told Nos news.

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