Regling: "Grexit would reduce the income of Greek people by 25%"

Klaus Regling

Thirty years ago, on February 7, 1992, the history of the Euro began with the signing of the Maastricht Treaty.

To celebrate this occasion with an interview of the Süddeutsche Zeitung was Klaus Regling, who knows the single European currency like no other.

The title of the article is: "The Stability Pact must be reformed."

The German newspaper notes Regling as saying: "Initially he drafted the rules for the Stability Pact on behalf of the German government.

"In 2004 he took legal action against Germany on behalf of the Commission when Berlin violated the rules.

"And now Klaus Regling, head of the European ESM Support Mechanism and Greece's largest creditor, wants to change the rules of the Stability Pact radically, allowing for exceptions, raising the debt-to-GDP ratio from 60% to 100% and creating a permanent fund for countries in crisis.

"These are proposals that could spark intense discussions with German Finance Minister Christian Lindner, who would not want any changes in either the debt ceiling or the budget deficit."

READ MORE: Greece has the 3rd Highest wage in South-East Europe.

The interview could not bypass the culmination of the European crisis with Greece at its centre.

To the question on why he disagreed with the position of the then Minister of Finance Wolfgang Schäuble for the expulsion of Greece from the euro, the head of the ESM said:

"We never disagreed for life," said Klaus Regling. "I respect his arguments. He wanted to put pressure on the eurozone countries to respect the rules.

"However, I considered that the price for the Greeks was too high.

"Already, due to the crisis, their income had fallen by 25%. For the most part this adjustment was necessary to reduce inequalities.

"However, there were calculations according to which the exit from the euro would mean a reduction of incomes in Greece by an additional 25%, which would lead to even more acute social problems.

"Besides, a Grexit would change the character of the eurozone."

READ MORE: Minimum interest rate on Greek Recovery Fund loans set to 0.35%.