Berlin split on the fate of Athens

A split has emerged in the German government over whether to grant Greece a second bail-out package.

Finance minister Wolfgang Schäuble would prefer to let Athens default, while Chancellor Angela Merkel doesn’t consider it an option. Even as Athens missed a third deadline this week to agree to new cuts and reforms, Merkel stated that throwing Greece out of the eurozone was “not an issue” for her.

Read more on how the split in Berlin is causing delays in Greek rescue negotiations.

Currently, the €130 billion bail-out of Greece contains unprecedented controls on Athens’ ability to spend funds through the permanent and beefed-up presence of international monitors. The agreement will also likely include an escrow account that must always contain enough cash to pay Greece’s debt for 9 to 12 months.

Officials hope the deal will be finalized by Monday, which will be quickly followed by a €200 billion Greek debt restructuring.

Read more about the tough bail-out terms proposed to Athens.