German Finance Minister Wolfgang Schaeuble, known for his critical stance over Athens, proposed a cracking deal to end the financial turmoils of US commonwealth-Puerto Rico and Greece.
“I offered my friend Jack Lew these days that we could take Puerto Rico into the euro zone if the US were willing to take Greece into the dollar union,” said Schaeuble at an event in Frankfurt on Thursday, adding that US Secretary of Treasury Jack Lew, “thought that was a joke,” he added.
Schaeuble will be amongst officials deciding on Greece’s future in the eurozone. Lew on the other hand, is working to solve the territory’s fiscal dilemma from worsening and causing a federal bailout.
Although both economies have been shrinking over the last few years, Puerto Rico’s debt burden is lower than Greece’s. The island territory is currently struggling to meet debt obligations of an outstanding debt of $72 billion while Greece is drowning in debt of about €320 billion ($353 billion).
In its last-ditch request for a bailout, Greece offered up a proposal in hopes of getting €53.5 billion ($59.2 billion) in a three year bailout loan. In exchange, the debt-burdened country offered reforms, which were similar to a previous proposal from its creditors on June 26.
Meanwhile an article published in the Huffington post, suggests that the union of Greece and Turkey could be beneficial for both countries.
Although both countries share a troublesome history, a partnership could lead to a healthy future, the article implied.
If Greece leaves the euro an agreement could lead Greece to using the Turkish lira, which has been fairly shock resistant, adjusting well to fluctuations in the economy, reported Huffington.
The fruitful changes in the Turkish economy over the last few years have drawn the attention of many. In the first quarter of 2015, Turkey’s Gross Domestic Product (GDP) surpassed expectations, hitting 2.3 percent. “At roughly 40 percent of GDP, Turkish debt is quite manageable,” wrote the article.
Moreover, the continued territorial dispute in Cyprus may also come to an end, leaving both Greece and Turkey as winners.