BERLIN (MNI) – German Finance Minister Wolfgang Schaeuble on Friday

warned that a Greek default could lead to a breakup of the Eurozone and

signaled that Greece would get aid from its Eurozone peers also beyond

2014.

“The potential impact of a Greek default on the other Eurozone

states would be grave,” Schaeuble said in the Bundestag, the lower house

of parliament, ahead of a vote on the Greek bailout bill. “A process

could be set in motion at the end of which the whole Eurozone could

break up,” he said.

“The problems of Greece cannot be solved overnight,” the minister

conceded. “The [rescue] program will still run for two years and if

there should be further financial need, we already said one year ago

that we will give Greece further aid to regain market access.”

Schaeuble once again countered speculation about a possible haircut

on Greek bonds held by the public sector, arguing that this would be

“setting the wrong incentives.”

The minister said he expected that the planned Greek bond buyback

on secondary markets would reduce the country’s debt “significantly

further.”

The additional financial burden for Germany from the revised Greek

bailout package can be offset without the need for a supplementary

budget next year, Schaeuble said.

A broad majority in the Bundestag for the Greek bailout bill is

assured today, given that the main opposition parties have said they

will vote with the government camp.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@mni-news.com

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