Merkel’s Party Votes to Allow Exits From Euro

[marmar]

(Bloomberg) German Chancellor Angela Merkel’s Christian Democratic Union party voted to allow euro states to quit the currency area, endorsing the prospect of a move not permitted under euro rules.

The resolution, which requires the assent of Merkel’s two coalition partners before becoming policy, is part of Merkel’s push for closer political ties and tighter budget rules in the European Union, with euro countries setting the pace. The drive is her answer to the debt crisis that began in Greece in 2009 and last week toppled governments in Athens and Rome.

“We’re not throwing anybody out,” Finance Minister Wolfgang Schaeuble said in an interview with broadcaster Phoenix from the CDU national congress in Leipzig today. “But if a country can’t carry the burden or doesn’t want to carry the burden, and the Greek people have to carry a heavy load, then we have to respect the country’s decision.”

Aiming for more a deeply integrated 17-nation euro area sets Merkel on a collision course with the 10 non-euro countries in the EU and raises the possibility of a Greek exit. Merkel and French President Nicolas Sarkozy first mooted the prospect of a state leaving the euro last month when they said then-Greek Prime Minister George Papandreou’s planned bailout referendum would be a vote on euro membership. He went on to scrap the ballot, then stepped down as premier. ..........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-11-11/german-cdu-is-set-to-back-motion-allowing-euro-member-exit-1-.html

[Laelth]

1. k&r for exposure. This is significant. n/t

-Laelth