Germany seeks to allay India's concerns on eurozone

NEW DELHI: German Finance Minister Wolfgang Schauble has sought to assuage India's concerns on the eurozone economies facing tough times.

Currently on a visit to India, Schauble met Prime Minister Narendra Modi and his counterpart Arun Jaitley here, while looking to reassure the country that the eurozone is not on the verge of a fresh crisis.

Germany is a key economy in the eurozone and is an important trading partner of India. Modi will visit Germany in April, where India will be the partner country at the Hannover Fair.

After a meeting with Modi on Monday, Schaeuble had told reporters he had tried to ease any concerns within the Indian establishment that the eurozone was in for a bumpy ride.

"The crux of our talks was whether Europe is going to remain on a stable trajectory," said Schaeuble after the meeting with Modi.

"As you know, I am an optimist in this regard," he added. However, the minister did not directly address the issue of Greece. He instead pointed to the tightening of eurozone banking regulations and a drive to push through a series of economic reforms in France as reasons to be upbeat on its future.

Fresh fears have arisen on the break-up of the eurozone ahead of elections in Greece this weekend, projected to be won by a radical left-wing coalition which wants to abandon the austerity imposed on Athens as a part of the country's 240-billion-euro bailout.

German Chancellor Angela Merkel, whose country is the effective paymaster for eurozone bailouts, is reportedly prepared to let Greece leave the eurozone if the Syriza coalition comes to power.