The 61-year-old, who stepped down as European Parliament president and is now bidding to succeed Angela Merkel, has tried to halt the growing questions over whether or not Greece should remain part of the eurozone and the EU as a whole.
Mr Schulz has warned of serious damage being inflicted to Europe caused by the growing debate surrounding the ailing south European country and its future within the bloc.
He said: "Those who now flirt with a Grexit again play with the division of the continent.
Martin Schulz (R) has spoken out over Grexit
Those who now flirt with a Grexit again play with the division of the continent… This is dangerous
Martin Schulz, former President of the European Parliament
"This is perhaps in the interest of Donald Trump or Marine Le Pen. But certainly not in the interest of Germany and Europe. This is dangerous.”
The comments come after the Greek Prime Minister Alexis Tsipras issued a warning to international leaders not to heap further restrictive burdens on the country.
It came ahead of the next round of bailout talks amongst eurozone finance ministers and international financial institutions such as the International Monetary Fund (IMF).
Former President of the European Parliament Martin Schulz as spoken out over Grexit Protest in Greece turns violent Wed, November 16, 2016
Protests in Greece turn violent following a protest against the visit of the US president in Athens on November 15, 2016
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He called on governments to remember that the country has made “many sacrifices in the name of Europe”, ahead of talks on February 20.
European governments are currently in a month-long standoff over the next phase of Greece’s €86billion (£73bn) bailout programme.
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The IMF has repeatedly threatened to walk away from the current package unless Greece receives more help managing its debt burden, described by the Fund as “highly unstable”.
German's Social Democratic politician Martin Schulz
Eurozone officials have, in turn, accused the IMF of using overly pessimistic forecasts to paint an unfairly gloomy picture of Greece’s capacity for reform.
The latest talk is that Greece could simply leave the eurozone completely, which would very likely trigger a ‘Grexit’, where the Greece followed the example of Britain and left the EU entirely.
Ted Malloch, believed to be US President Donald Trump’s choice as the country’s EU ambassador, revealed that Greek economists have been making enquires about the country leaving the euro and tying the currency to the US dollar.
German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras
Tying Greece temporarily to the US dollar would be one way for the authorities in Athens to ensure that its currency does not completely tank if it leaves the eurozone, as would likely occur with a reissued drachma.
On the ongoing debt crisis, Prof Malloch said: “Greece might have to sever ties and do Grexit and exit the euro. It needs debt restructuring, it really needs debt relief, and I know people in Europe don’t want to hear that.
“They need to reduce the debt overhanging and that means frankly something that people in Germany and elsewhere have not been able to accept, it means a haircut to the lenders and to the banks in Germany and probably, at least in my perspective, a return to the drachma.
“So the problem then is who will manage that transition, and how, to avoid all the chaos and all the instability.”
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