Greece should Grexit & receive debt relief, says German party leader

According to the head of Germany’s pro-business (FDP) Free Democrats leader Greece should leave the euro zone and also be given debt relief.

Greece should, however, remain in the European Union, FDP leader Christian Lindner told a German radio station on Thursday, so it can receive subsidies to put into infrastructure or help small- and medium-sized businesses.

"It's clear that Greece needs to have its debts written off," Lindner said. "Greece's debts can only be written off outside of the euro zone, so we're talking about Grexit."

Recent polls put support for the FDP, which was the junior coalition partner to Chancellor Angela Merkel's conservatives from 2009 to 2013, at 5 to 7 percent. That suggests it will get enough support to cross the 5 percent threshold to enter the Bundestag lower house of parliament in elections on Sept. 24 this year.

Lindner also added Greek Prime Minister Alexis Tsipras did not intend to implement agreed reforms, so the strategy needed to be changed.

The German government wants the International Monetary Fund (IMF) to have a stake in Greece's bailout to give the rescue plan greater credibility. But it opposes granting Athens the significant debt relief that the IMF is demanding.