The Latest: Germany Says Stick to Rules, No Greek Debt Cut

The latest on Greece's financial crisis (all times local):

10:14 a.m.

Germany's finance minister says the eurozone must keep to its rules as it negotiates a new bailout with Greece, which Berlin says rules out an outright debt cut for Athens in the eurozone.

Wolfgang Schaeuble told Deutschlandfunk radio Thursday negotiations will determine whether a new package is possible given Greece's increased needs.

He added: "We will open negotiations, we will make every effort, but we must keep to the rules because Europe is based on the principles of democracy and the rule of law"

Schaeuble has taken a hardline approach. Last weekend, a paper from his ministry suggesting the possibility of a voluntary, temporary Greek euro exit emerged. The minister said Thursday "it would perhaps be a better way for Greece, and many say that — increasingly in Greece too."

9:57 a.m.

Germany's finance minister says the Greek Parliament's approval of an austerity package is "an important step" but is warning that talks on a final bailout deal will be tough — and that an outright debt cut would be incompatible with Greece keeping the euro.

Greece's creditors demanded the Greek vote before opening full bailout negotiations. Eurozone finance ministers must approve opening those talks, as must Germany's Parliament in a vote expected Friday.

Finance Minister Wolfgang Schaeuble told Deutschlandfunk radio Thursday that making Greece's debt sustainable will be tough. Germany says a debt cut would be illegal.

Schaeuble said: "No one knows at the moment how it's supposed to work without a debt cut, and everyone knows that a debt cut is incompatible with membership in the currency union."

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