‘Montenegro’ scenario of parallel currency ‘cited’ by Schaeuble for Greece

German Finance Minister Wolfgang Schaeuble reportedly “cited” a … “Montenegro” scenario for debt-laden and recession-plagued Greece on Friday, i.e. a parallel currency.

According to Bloomberg, under such a scenario the euro would be used in the country along with a new (local) currency if ongoing talks with creditors languish.

The same report says the powerful Schaeuble mentioned the prospect at a recent meeting “without endorsing it”. Bloomberg said people at the same venue heard Schaeuble referring to the example of Montenegro, which uses the euro but isn’t a member of the euro area, or even the European Union, for that matter.

While the radical leftist government in Greece has dismissed any notion of a “Plan B”, maintaining that a “mutually beneficial solution” is the only option, it appears that Berlin has “contingency plans”, regardless of the continued high-profile statements declaring support for Athens’ continued membership in the euro area.

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