Luxembourg Warns Germany a Grexit Would Be Catastrophic

• Luxembourg Warns Germany a Grexit Would Be Catastrophic
  by Reuters, via http://www.todayonline.com/  
  BERLIN – Luxembourg warned Germany on Sunday of a “catastrophe for Europe” if it pushed for Greece to leave the euro zone as the idea of a temporary exit gained traction with some of Chancellor Angela Merkel’s conservatives.
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  Luxembourg Foreign Minister Jean Asselborn’s comments came after Germany argued that Greece could take a five-year “time-out” from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout.
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  “It would be fatal for Germany’s reputation in the EU and the world if Berlin does not now seize the chance that there now is with the Greek reform offers,” Asselborn told Germany’s Sueddeutsche Zeitung newspaper.
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  “If Germany pushes for a Grexit, it will provoke a profound conflict with France. That would be a catastrophe for Europe,” he added in an advance release of an interview to run in the Sueddeutsche’s Monday edition.
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  In a paper reviewing an offer of reforms from the Greek government in return for a three-year loan, German Finance Ministry officials wrote: “We need a better sustainable solution.”
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