Schaeuble ‘errs’ on Greek euro exit proposal, Sapin says

German Finance Minister Wolfgang Schaeuble “errs” in his proposal to allow Greece a temporary exit from the euro region linked to a reduction of its debt, his French counterpart Michel Sapin said.

In an interview with Germany’s Handelsblatt newspaper, Sapin said while he has a “clear dissent” with Schaeuble on this point, he respects the German minister’s stance as Schaeuble acted out of conviction rather than tactical motivation.

“I believe that Wolfgang Schaeuble errs and even comes into contradiction with his deep European will,” Sapin said. “This will, which is also mine, is to strengthen the euro zone.”

Sapin’s comments highlight differences of opinion between France and Germany on leeway to ease Greece’s debt load while the country is a member of the currency union. On July 9, Schaeuble said he’s “more skeptical” than Sapin regarding the scope for a reprofiling of Greek debt.

There must be “no Grexit and also no other exit” from the euro region, Sapin said. “If you allow a temporary pull-out, it means that every other country will try to escape from its difficulties by making adjustments to its currency.”

[Bloomberg]