Greece Plan B

Bankrupt but Firmly in the Euro

A secret German government plan would let Greece default on its debts but remain in the euro.
  • Why it matters

    Why it matters

    The German government’s plan to allow for a Greek default, while maintaining the country in the euro, could bring the currency’s crisis to an end.

  • Facts


    • A German government plan would allow Greece to default on its debts and remain in the euro.
    • The plan was first reported by Die Zeit, Germany’s leading weekly newspaper.
    • The plan hinges on Greece’s support, which will be probed next week at an IMF meeting in Washington.
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The German chancellor’s most important plan is not put away in a drawer. It is not saved on a computer hard drive, and you can’t download it from the Internet. Officially, it doesn’t exist.

It is the Plan B – B for bankruptcy of Greece, a sovereign debt default that could bring the country’s long-running fiscal odyssey in the euro zone to a close.

The plan is known to Chancellor Angela Merkel, the German economics minister, Sigmar Gabriel, and to Finance Minister Wolfgang Schäuble. Christine Lagarde, managing director of the International Monetary Fund is privy to it, as is Mario Draghi, president of the European Central Bank.

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