The executive director of the German Institute for Economic Research (DIW Berlin), Marcel Fratzscher claimed the Greek debt is sustainable, adding that eventually a ‘haircut’ will be made, even if it is dubbed differently. ‘The danger of a Grexit has been substantially reduced and it is a highly unlikely prospect’, said Fratzscher. He went on to say that the majority of the EU, including within Germany, understands that the Euro is a force of stability for Greece and acts as ‘an anchor’ for the country. The German economist considers a haircut on the Greek debt inevitable, adding it is not whether it will happen, but ‘when it will be decided, in the next months or later’. The unofficial consultant on economic matters to German Chancellor Angela Merkel, voiced his support for linking interest rate payments of the Greek dent with the country’s growth to provide the government a stronger incentive for reforms.