German Finance Minister, Wolfgang Schaeuble believes it is possible that capital controls may be imposed in Greece as part of efforts to deal with its fiscal crisis.

That at least is an implication that emerged during a discussion he had with the American economics professor, Kenneth Rogoff, that is to be published tomorrow in the German newspaper Die Zeit.

The decision to implement controls on the movement of capital is the exclusive responsibility of each member state of the European Union, he said when asked if he considered such a development as possible.

During the discussion between the two men, Rogoff proposed that Greece implements restrictions on the movement of capital for five or ten years in order to help consolidate its economy. Such a move would effectively make a euro in Greece worth less that a euro in Germany or France and would be in practice a form of devaluation.

For this reason however the proposal is highly controversial. Irrespective of the discussion over capital controls, in the interview Schaeuble called on the Greek government to come to a decision about the future of the country in the monetary union.

“We have said that we will help you, but you must stand on your feet again economically. That is the philosophy of the rescue programme. The new government (of Greece) says: We want to keep the euro but we do not want the programme anymore. Those two things are not compatible,” Schaeuble reportedly stressed.