Greece needs third bail-out, admits German finance minister

[bemildred]

His comments mark a surprise departure from those of his government colleagues, who have been careful to play down the deeply unpopular prospect in the run-up to German elections in September.

"There will have to be another programme in Greece," said Mr Schaeuble, addressing a campaign audience in northern Germany. However he maintained that, despite this, there would be no further debt haircut for Athens.

Just hours before Mr Schaeuble spoke, German Chancellor Angela Merkel was quoted in a regional newspaper dismissing questions about further aid for Greece, saying there was no point in discussing the matter until its second package expires at the end of next year.

However, economists have long predicted a third rescue package for Greece, which is struggling to control its mounting debt burden as the economy shrinks under tough austerity measures.

http://www.telegraph.co.uk/finance/financialcrisis/10255527/Greece-needs-third-bail-out-admits-German-finance-minister.html

[annasmith]

1. and next?

third bailout for Greece being cooked. The public debt of Greece is still on the rise and so is it's unemployment. More debt... more austerity... The economy of Greece is shrinking. i do not see a way out of this except defaulting. Greece will never be able to pay its debt.