Schauble Claims Temporary Grexit Better Option for Debt-Ridden Athens

A temporary exit from the European Union might be a better option for Greece as the country cannot get out of the debt crisis without an outright reduction, currently illegal under European law, the German finance minister said Thursday.

MOSCOW (Sputnik) – Eurozone leaders reached an agreement Monday on a $95-billion program to assist Greece through the current stage of its ongoing financial crisis. The deal envisages austerity measures for the heavily indebted country, including pension cuts and tax increases.

“Nobody knows at the moment how it should go without a debt cut. And everybody knows that a debt cut is incompatible with membership of the currency union,” Wolfgang Schauble said in an interview with Deutschlandfunk radio.

Greece has received about $270 billion from its main lenders, which include the International Monetary Fund, the European Central Bank and some Eurozone member states under two bailout programs, the last of which expired on June 30.

On Thursday night, the Greek parliament voted in support of the new package of bailout measures, opening doors for a resumption of monetary aid from international lenders.

Several members of the ruling left-wing Syriza party, including Greece’s former Finance Minister Yanis Varoufakis and Energy Minister Panagiotis Lafazanis, voted against the measures.