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Schaeuble: Greek austerity is working

Germany's Schaeuble says Greek austerity working, markets hit despite Cyprus deal

Associated Press

ATHENS, Greece (AP) -- German Finance Minister Wolfgang Schaeuble has told a Greek newspaper he believes austerity measures in the crisis-hit country are working, despite growing hardship and high unemployment.

The German Minister told the Athens daily Ta Nea in an interview published Tuesday that the measures were making up for decades of policy "lapses."

Greece has been surviving on rescue loans from other eurozone countries and the International Monetary Fund for nearly three years, but spending cuts have battered the economy, pushing unemployment up to almost 27 percent.

The Athens Stock Exchange, meanwhile, was down 3.5 percent in midday trading despite the bailout agreement reached in Cyprus that imposes big charges on large depositors in the country's big two banks. Other European markets were stable.

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