Greek euro exit seen as costly gamble by Germany's Social Democrats

By Brian Parkin and Birgit Jennen

Greek opposition leader Alexis Tsipras won?t get German support for easing austerity, though Greece?s exit from the euro area would be costly for Germany, members of Chancellor Angela Merkel?s two main coalition parties said.

?Europe can?t afford a Greek exit,? Joachim Poss, the Social Democratic Party?s deputy finance spokesman in the German parliament, said in a phone interview. Suggestions by allies of Merkel that the 19-nation currency bloc could weather Greece?s departure amount to ?playing with fire at a fragile moment in the stability of the euro area,? he said.

The warning from a senior member of Merkel?s coalition adds to debate about Greece?s future in the euro area as European leaders focus on the potential fallout from Greek elections in less than three weeks. With the opposition Syriza party leading in polls on a platform of ending the austerity imposed as a condition of Greece?s two bailouts, Prime Minister Antonis Samaras has said a Syriza victory would lead to default and the country?s exit from the euro.

Renewed speculation about the fate of the country that triggered Europe?s sovereign-debt crisis was fanned by a report in this week?s edition of Der Spiegel magazine that Merkel?s government is ready to accept a Greek exit, a development it said Berlin sees as inevitable and manageable if Syriza wins.

?We want to keep the Greeks in the euro, but that will only work under the agreed conditions,? Elmar Brok, a European Parliament member from Merkel?s Christian Democratic Union, said by phone. ?We can?t let voters get the impression that impunity wins. This debate is about making it clear that Tsipras?s promises won?t work.?

German liabilities

Steffen Seibert, Merkel?s...