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No change of course on Greece, Germany says

German government spokesman says Berlin stands by a euro zone involving Greece, despite media reports

05.01.2015 - Update : 05.01.2015
No change of course on Greece, Germany says

BERLIN

The German government has insisted it has not changed its policy on Greece remaining part of the euro zone following media reports it is preparing to accept a Greek exit from the monetary system.

Government spokesman Steffen Seibert declined to comment directly at a press conference Monday on a report by Der Spiegel a day earlier which said Berlin had changed its policy towards Greece.

Seibert said: "Our goal has always been to stabilize and strengthen the whole euro zone, with all of its members, including Greece.

"That would be possible if we continue along the path we already started and if all the parties stick to the agreements we have concluded in the previous years."

Citing unnamed government sources, the German weekly reported on Sunday that Germany was preparing itself for a Greek exit from the euro in the event Greek opposition leader Alexis Tsipras wins Greece's Jan. 25 election and abandons a Troika "bailout" program.

But, when asked about concerns over the growing popularity of the radical left coalition SYRIZA in Greece, Seibert said that Germany would respect the decision of the Greek electorate.

"We will not comment on the election campaign in Greece. We will respect the sovereign decision of the Greek electorate," he said.

- 'Contagion' fears

SYRIZA is widely seen as being the most probable winner of the upcoming elections, according to the polls.

The party has strongly criticized the unpopular austerity measures imposed by the terms of the bailouts that the Greek government accepted in 2010 and 2012.

The German government had considered a Greek exit from the euro in 2012, but ultimately rejected the idea out of concerns for the threat it would pose to the entire European Monetary System.

It was believed there was a danger that "contagion" -- or credit risk -- would spread to other EU nations such as Spain, Ireland and Portugal, which were also struggling with financial crises at the time.

Der Spiegel reported that the German government now believed that reformed financial regulations in the EU would "ring-fence" Greece, and control the risk.

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