Wolfgang Schaeuble
 Reuters

Wolfgang Schaeuble  Reuters

BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble said he would submit a request to Germany's parliament to reopen negotiations on Greece's third bailout with "full conviction", but still believes a temporary Grexit would perhaps be a better option.

"We are a step further," Schaeuble told Germany's Deutschlandfunk radio on Thursday, after the Greek parliament passed a sweeping package of austerity measures demanded by European partners.

"This is an important step," he said.

He added, however, that many economists doubt that Greece's problems can be solved without a debt haircut.

He said a haircut would be incompatible with a country's membership of the euro, meaning that a country would therefore have to leave the currency union temporarily.

"But this would perhaps be the better way for Greece," Schaeuble said.

(Reporting by Caroline Copley; Editing by Clarence Fernandez)