The German government declined on Wednesday a report saying that Berlin is formulating a plan to keep Greece in the Eurozone even if it defaults on payments to creditors, said Reuters. According to an article published in German weekly Die Zeit, “The plan under discussion is aimed at allowing the European Central Bank to continue financing Greece in the event of bankruptcy.” “In addition, Greek banks would be restructured, allowing them to continue to take part in central bank operations even after a state bankruptcy,” the report continued. Athens, in exchange, would have to show willingness to cooperate and fulfill its reform obligations. However, the Greek government has not shown willingness to back down on certain measures required, such as pension cuts and labor market laws. The negotiation progress is slow as Athens has not come up with a complete list of proposed reforms yet. According to a Financial Times report, Greece is also making plans to default on payments. So far, creditors say that it is next to impossible to release funds in April because there is not enough time to review the Greek list and come to a decision.
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