Germany: Greece Euro Zone Exit Doable

The German government now believes that the euro zone has the capacity to deal with a potential Greek exit. According to the German magazine Der Spiegel, Angela Merkel and her finance minister think the right reforms have been implemented since the financial crisis was at its height. “The danger of contagion is limited because Portugal and Ireland are considered rehabilitated,” the weekly news magazine quoted one government source as saying. If Greece’s left-wing Syriza party wins in the January 25 election, the German government reportedly believes that a Greek exit from the euro zone will be nearly unavoidable.