Luxembourg warns Germany of catastrophe if it pushes for Grexit

Luxembourg`s foreign minister has made an impassioned plea for Germany to avoid a Greek exit from the euro, warning Berlin of a catastrophic schism with France if it pushes for Athens to leave the currency union.

Berlin: Luxembourg`s foreign minister has made an impassioned plea for Germany to avoid a Greek exit from the euro, warning Berlin of a catastrophic schism with France if it pushes for Athens to leave the currency union.

The comments from Jean Asselborn, released on Sunday, came after Germany argued that Greece could take a five-year "time-out" from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout. 

"It would be fatal for Germany`s reputation in the EU and the world if Berlin does not now seize the chance that there now is with the Greek reform offers," Asselborn told Germany`s Sueddeutsche Zeitung newspaper.

"If Germany pushes for a Grexit, it will provoke a profound conflict with France. That would be a catastrophe for Europe," he added in an advance release of an interview to run in the Sueddeutsche`s Monday edition.

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