“The agreements must be respected. I don’t think we can or should renegotiate,” said Martin Schulz, a German politician and president of the European Parliament, on a visit to Berlin.Gerda Hasselfeldt, a senior member of the Bavarian Christian Social Union, sister party to Chancellor Angela Merkel’s Christian Democratic Union, echoed Schulz in warning Greece against any backsliding.“Our position is unchanged. Aid can only flow if the conditions are met,” Hasselfeldt told reporters.
“Preparations are quietly being made for the contingency if Greece decides that it’s better off with its own currency,” said Heribert Dieter, an expert on international financial markets at the German Institute for International and Security Affairs.Most Greek debt is now held by the troika, easing the threat to the banks, and rescue mechanisms are in place to ease speculative pressure on other members of the euro zone. “Those measures could be used temporarily to take speculative pressure away from Italy and Spain,” Mr. Dieter said. “These are the two candidates that may need to be sheltered for weeks, maybe months, but not years.”