Eurogroup Head Juncker Says Angela Merkel Is "Playing With Fire... With Extreme Consequences"

Jean Claude Juncker

Photo: Wikimedia Commons

A plan to involve private creditors in a Greek restructuring is “playing with fire,” Eurogroup leader Jean-Claude Juncker told Germany’s Sueddeutsche Zeitung.The hard restructuring favoured by Angela Merkel would be seen as a default by ratings agency, leading to “extreme consequences” for the eurozone. He warned that Belgium and Italy could be forced to seek a bailout even sooner than Spain.

Although Germany seems to have agreed to a soft restructuring, nothing is settled yet.

Asked whether Greece could quit the eurozone, Juncker said it was an “absurd” idea with “unimaginable” consequences. “There would be a contagion not only across the eurozone but also in Romania, Bulgaria, Macedonia. It would cause widespread fire. Even the most outlandish don’t raise this hypothesis,” he said.

Don’t miss: A quick guide to who gets burned if Greece defaults >

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