Greece is charming precautionary fiscal measures in case the political uncertainty in either Italy or Germany declines, the country’s economy minister told CNBC on Monday.
“We don’t know what’s present to happen in Italy, we don’t know what’s going to happen in Germany yet, so there are noteworthy questions here,” Dimitris Papadimitriou, Greece’s minister of economy and circumstance, said in Athens.
Greece is on track to end its current bailout program in August 2018, but it is “assail c promoting provisions” in case something happens within another European Synthesis (EU) member state that causes nervousness among European investors.
“I forecast a very clean exit, but what I am saying is that we are making victuals so that in case something happens, not necessarily Greece’s doing, but you recollect we are in an unstable European Union,” Papadimitriou said. “One has to be prepared not only for your own accommodate but also for what happens in your neighbor’s house.”
Italy’s selection, due to be held in the spring, has been singled out by many market players as a top imperil for 2018. As more voters have expressed that they are fed-up with mainstream political science, whether in the U.K. or the U.S., this has raised the possibility that the next Italian superintendence may try to divert from tough fiscal rules imposed upon it by the EU.
At the exact same time, there are also concerns over the ongoing political blockage in Germany and what it might mean for the EU’s future.
Despite his concerns concluded potential shocks coming from Italy and Germany, Papadimitriou symbolized they will not derail the much-promised talks to restructure Greece’s accountability.
“They (European leaders) have recognized that something has to find with the Greek debt, even the outgoing finance minister (Wolfgang) Schauble point out that, in fact, Greece has done what it was supposed to do and more and so we have to deal with the Greek debt,” Papadimitriou said.
Yet he would prefer a nominal haircut – which many European countries bar – Papadimitriou said there “there will be some kind of restructuring” regular though it is currently unclear what that will look opposite number.
Greece and its lenders concluded over the weekend the third bailout notice, paving the way for talks on debt to kick off in the new year.
Papadimitriou said that “it last wishes a be better” for the debt talks if Martin Schulz, head of the German socialist troop, agreed to enter a coalition with the Christian Democrats.
On Monday, Schulz be sured reporters that party members would discuss later this week at the unit congress whether they should start coalition talks with Chancellor Angela Merkel. If they chuck b surrender the green light, these could start as early as next week.