German spokeswoman Marianne Kothe is on Bloomberg confirming comments made by Wolfgang Schaeuble, in a magazine article Sunday, that Germany is ready to consider further aid to Greece. She says that the comments re-affirm Germany’s position on Greece.
Schaeuble said that it is possible Greece may need a third bailout of a limited amount around €10bn.
The news didn’t go down well with Greece’s European election winners Syriza who said that the comments pointed to new austerity measures that would “exhaust people”.
While Greece had a very successful bond auction last month there’s still an issue of a budget black hole for 2014/2015 which they are trying desperately to close.
Last week they also had a bailout tranche from the IMF signed off for €3.38bn which came with plenty of warnings that there was still much to do to fix the ongoing problems.
The market is pretty much numb to all things Greek but with the Syriza party gaining traction in the euro votes it could also spell trouble for domestic politics, which the market will sit up and take notice of.
