BERLIN (MNI) – Greek Prime Minister Antonis Samaras said in a
newspaper interview published Thursday that Greece can avoid another
haircut on its debt if it gets back on a sustainable growth path.

“Our debt position is now officially sustainable,” Samaras told the
German daily Bild. “But for that it naturally takes sustainable growth.”

“We’re aiming to get out of the recession and reform our economy so
that enough revenue is created to pay interest rates and pay back the
debt,” the prime minister said, stressing that Greece will remain in the
Eurozone.

Samaras agreed that Greece’s current situation could be compared to
that of Germany’s Weimar Republic following the first World War. “But we
have learned from history,” he said. “Austerity alone in the midst of a
recession cannot lead to a healthy economy. This policy destabilises
democracy, destroys social cohesion and can lead to the rise of
extremism.”

“We are attempting to succeed with fiscal consolidation and we will
show progress with privatisations,” he said. “We are stabilising our
economy and our social cohesion. We will therefore avert the fate of the
Weimar Republic.”

“If you look at our reforms and changes, you will understand that
we are building a success story,” Samaras said. “Everyone will realize
that soon. And then no one will ask anymore about our Eurozone
membership or a debt haircut.”

German Chancellor Angela Merkel in a newspaper interview published
Sunday did not rule out a haircut on Greek debt held by the public
sector after 2015. However, a government spokesman on Monday denied that
Merkel had meant to signal the possibility of such a debt haircut after
2015.

Merkel was asked by the German weekly Bild am Sonntag if a debt
haircut could come after German elections next autumn. “If Greece one
day gets along with its revenue without making new debt, then we have to
look at the situation and assess it,” Merkel replied.

“If everything goes as planned, this won’t be the case before
2014/15,” the chancellor said.

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

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