Merkel warns against Greek default – but says ‘firewall’ is needed

Angela Merkel has said she still believes Greece’s burden of debt is sustainable – but that a ‘firewall’ is needed so that a potential default does not have a ripple effect among other Euro member states.

In an hour-long interview on Germany’s ARD television last night, Merkel said the Eurozone as a whole needed “to be able to put up a barrier” so that countries who defaulted did so on an individual basis without impacting on others.

“I don’t rule out at all that at some point we will have the question whether one can do an insolvency of states just like with banks,” Bloomberg quotes her as saying.

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