Germany Floats Greek Restructuring as Papandreou Pushes Cuts - By Tony Czuczka

German officials are putting Greek debt restructuring on the table over declarations by leaders in Athens and policy makers elsewhere in Europe that Greece will make good on its obligations.

German Deputy Foreign Minister Werner Hoyer said yesterday a Greek restructuring “would not be a disaster.” The previous day, Finance Minister Wolfgang Schaeuble was quoted by Die Welt newspaper as saying “further measures may have to be taken” if Greece flunks a June audit.

Chancellor Angela Merkel’s deputies are raising what has been a taboo issue for European officials -- a restructuring by a euro member -- to show its unwillingness to contribute to more bailouts, Holger Schmieding, chief economist at Joh Berenberg Gossler & Co. in London, said in a phone interview. Germany is the largest contributor to European Union rescue funds, which have been tapped by Ireland, Greece and Portugal.

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