Following the Eurogroup meeting that took place without the participation of Greek Finance Minister Yanis Varoufakis, the French Minister Michel Sapin commented that the dramatic developments do not mean that Greece has left the Eurozone and that France is prepared to resume talks at any point.
The French Minister stressed that the Eurozone was the result of hard work and that he is not prepared to deconstruct it with such a simple decision, arguing that democracy was at steak. Mr. Sapin’s comments have caused tension within the Eurogroup, prompting reactions regarding the handling of the situation by the Dutch Finance Minister Jeroen Dijsselbloem.
The Italian Minister of Finances Pier Carlo Padoan argued that the non-extension of the bailout program does not automatically mean that Greece is expelled from the Eurozone and underlined that there are no legal provisions for such an occurrence.
Although there have been speculation that a possible departure of Greece from the Eurozone would not affect other 18 members of the single currency, there is a growing number of Eurozone members express their concern for unpredictable consequences. The Irish Finance Minister Michael Noonan was one of the first to stress that Greece must not be forced out of the euro.
In the dramatic meeting the EMS president Klaus Regling stated that the European Stability Mechanism, which was developed to solve problems and ensure the stability of the Eurozone, noted that there are tools available to support Greece, even now. At that point many Ministers from the south of Europe reacted and stressed that that was the role of Mr. Dijsselbloem.
After coming under fire from his colleagues, the Dutch Minister was forced to make a second statement and apologize for not inviting the Greek Minister of Finances Yanis Varoufakis to the meeting, as well underlining that the Eurozone has 19 members and that the expiration of the Greek program does not mean that Greece will leave the single currency.
During the heated discussions it was argued that initiative must be taken. Amongst the ideas discussed was for Greece to formally request a new aid program from the ESM by Tuesday evening, which would tackle the debt, stabilize the banking system and help the country exit the crisis.
Following a debt sustainability analysis and documentation of capital needs, the program would set conditions for Greece in exchange for further support. This plan does not include the International Monetary Fund. Any decisions must be taken by Tuesday though, meaning that further Eurogroup meetings may take place by then.
