Schaeuble: Berlin making contingency plans for Grexit

German FinMin Wolfgang Schaeuble said Berlin is making contingency plans if talks between the Greek government and creditors collapse, a development that would usher in the prospect of default.

He made the comments to a finance committee in Germany’s lower house.

Schaeuble was quoted as saying he remains hopeful an agreement will be found before the second bailout package expires on June 30,  nevertheless he said Germany is preparing for all scenarios.

His statements were conveyed by lawmakers attending the meeting, according to Bloomberg, as the meeting was held behind closed doors.

Schulz

Meanwhile, another top German politician, EP President Martin Schulz, was quoted by the Guardian as saying that a “Grexit” could even lead to Greece’s exit from the EU.

Martin Schulz, the president of the European Parliament, has told the Guardian that Greece could end up out of the European Union.

“I think that leaving the euro is also leaving the European Union,” he warned, although he acknowledged that there’s nothing in the Maastricht Treaty referring to an exit from the common currency.