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REPORT: Now Germany is getting ready for Greece to default too

Apr 15, 2015, 15:45 IST

Germany is working on a plan to keep Greece in the eurozone if the country defaults on its debt, according to weekly newspaper Die Zeit.

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The Financial Times reported on Monday evening that Greece is already making its own plans for a default scenario.

Things are looking more and more grim for Athens: Negotiations for the country's latest bailout tranche are still going, but they're not looking good. Senior eurozone figures are suggesting there will be no deal by April 24, when the Eurogroup of eurozone finance ministers next meets.

According to Die Zeit, Germany wants to keep Greece in the euro if it defaults. That would be a difficult task, and would probably require strict capital controls to stop money from flooding out of Greece.

It's difficult to say when the whole situation will come to a head - HSBC suggested the Greek government's payment to the IMF on May 12 is the "crunch point" at which they won't be able to afford to go on. Even if that's managed, there are several more payments in May and June which the government can't surmount on its own.

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Thankfully, it looks like if it does come to that, Europe will have at least two plans to work from.

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