Greece is set to ditch the Euro in favour of US dollar in devastating move which would 'freak out' Germany and humiliate EU, claims Trump's pick for Brussels envoy
- Donald Trump's pick for EU ambassador Ted Balloch made the comments on TV
- He told a Greek broadcaster the country's officials were looking into EU options
- Greece's spiraling financial crisis has led to EU bosses threatening expulsion
- If the country does drop out of the union it will be seen as a blow by Germany
Greece is said to be considering ditching the Euro in favour of the US dollar in a devastating move which would humiliate Brussels.
Donald Trump's pick for EU ambassador Ted Malloch claimed senior Greek economists are looking into taking on the American banknotes if the country turns its back on the European currency.
Due to Greece's crippling financial crisis, officials are said to be desperately searching for an alternative to the Eurozone, which would 'freak out' Angela Merkel, according to Malloch.
People attend a rally in support for Greek people to vote 'No' at the referendum held on July 5, 2015 in Greece and against austerity in Greece in Brussels, Belgium
Donald Trump's pick for EU ambassador Ted Malloch, pictured, has made the claims
Protesters wave flags and hold up placards amid the spiraling Greek financial crisis
Supporters of Alexis Tsipras, Greece's prime minister, at a rally back in 2015
Prof Malloch was interviewed on Greek TV, where he said Greece leaving the EU would be the best option for residents, and added the current situation is 'simply unsustainable'.
'I know some Greek economists who have even gone to leading think tanks in the US to discuss this topic and the question of dollarization,' he said, according to local press.
The likely candidate for the Brussels envoy job has previously stated he expects the Euro to crash by 2018.
His comments come just four days after one of the EU’s most powerful finance chiefs warned Greece will be forced out of the Eurozone if it fails to address its ailing finances.
Amid growing concern about the outbreak of another European economy crisis, German finance minister Wolfgang Schaeuble said calls to slash the country’s debt mountain would lead to Grexit.
The blunt assessment by Angela Merkel’s finance chief follows a damning report by the International Monetary Fund that claimed Greece’s fragile economy would soon become ‘explosive’.
In a move that is threatening to destroy the current bailout package, the Washington-based body called for Europe to send even more money to cut Greece’s ‘highly unsustainable’ debt.
The war of words about how to avoid another crisis and assist the Greek economy intensified yesterday as officials desperately tried to reach agreement.
But Mr Schaeuble rubbished the IMF’s call for the EU to inject more money into Greek coffers and said that Germany had no intention of providing a ‘debt haircut’.
‘For that, Greece would have to exit the currency area,’ he said.
‘Pressure on Greece to undertake reforms must be maintained so that it becomes competitive, otherwise they can’t remain.’
The possibility of providing yet more publically-funded debt relief to Greece is seen as a politically toxic idea in Germany just months before Merkel vies for re-election.
The stalemate between the EU and the IMF may stall a crucial £6billion repayment owed by Greece in July for which they require another bailout payment.
The European Union has insisted Greece's economy is on track despite an IMF warning over the country's 'explosive' debt that could threaten the future of the Eurozone.
A referendum to decide whether Greece was to accept bailout conditions put forward by the European Commission (EC), the International Monetary Fund (IMF) and the European Central Bank (ECB) in 2015.
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