Euro Crisis

-(Dow Jones)- Private sector involvement in a Greek rescue package must be "absolutely" voluntary and cannot lead to a credit event, Deutsche Bundesbank board member Joachim Nagel said in an interview published Wednesday.

Fundamentally, "private creditor participation is in order" as long as it meets the aforementioned conditions, Nagel told Germany's Sueddeutsche Zeitung. Furthermore, under no circumstances can "the participation of private creditors lead to a higher burden" for public budgets, he said.

Nagel told the paper the euro would indeed survive a Greek bankruptcy, though this is not a desirable outcome.

He also said that paper viewed as worthless by the market cannot be accepted by a central bank as collateral. "We cannot arbitrarily change our rules," he says, otherwise "monetary policy would lose its foundation."