Luxembourg warns Germany of catastrophe if it pushes for Grexit

The comments from Luxembourg's foreign minister came after Germany argued that Greece could take a five-year "time-out" from the euro zone

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Luxembourg's foreign minister has made an impassioned plea for Germany to avoid a Greek exit from the euro, warning Berlin of a catastrophic schism with France if it pushes for Athens to leave the currency union.

The comments from Jean Asselborn, released on Sunday, came after Germany argued that Greece could take a five-year "time-out" from the euro zone and have some of its debts written off if Athens fails to improve proposals it has made for a bailout.

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"It would be fatal for Germany's reputation in the EU and the world if Berlin does not now seize the chance that there now is with the Greek reform offers," Asselborn told Germany's Sueddeutsche Zeitung newspaper.

"If Germany pushes for a Grexit, it will provoke a profound conflict with France. That would be a catastrophe for Europe," he added in an advance release of an interview to run in the Sueddeutsche's Monday edition.