Bloomberg News

Germany's Fricke Says Greek Bank Contagion Can Be Stopped

June 14, 2012

German Free Democratic Party lawmaker Otto Fricke said it’s possible to stop financial- industry contagion from an eventual Greek euro exit, though he doesn’t want Greece to leave the single currency.

“It’s a Greek decision,” Fricke, the FDP’s budget spokesman in parliament, said today in a Bloomberg Television interview in Berlin. “If the voters, and they’re the boss in that game, if they decide that they want to have a parliament that is not willing to fulfill the austerity measures, it’s their choice.”

Asked how much more money Germany would willing to give to help Greece, Fricke said: “at some point there is an end.” Financing a country that doesn’t change its structures isn’t the solution, he said.

While contagion is the biggest concern related to a possible Greek euro exit, Fricke said he doesn’t expect “panic” or a “bank run.”

Rifts in the 17-nation euro region are deepening with Greek elections on June 17 risking the first exit from the single currency as voters buckle under the continent’s most severe austerity program. Spanish bond yields reached a euro-era record after the nation’s request for aid for its banks fueled speculation the world’s 12th-biggest economy may need a full rescue.

To contact the reporters on this story: Rainer Buergin in Berlin at rbuergin1@bloomberg.net; Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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