"Greece has to find a way, and we will help them, in whatever way we can. But it has to find a way how Greece will someday regain the confidence of financial markets, that is what we hope. And that is to regain a competitive economy," Schaeuble said in remarks at Columbia University's School of International and Public Affairs in New York.
Schaeuble has been at odds with the Greek government of Prime Minister Alexis Tsipras, elected last year on promises to end austerity. Schaeuble said the country was delivering better-than-expected recovery results "up until the last election."
"I have told Prime Minister Tsipras, if you promised to your electors in campaigning that you will get recovery and stay within the euro zone without sticking to the program, you will suffer," Schaeuble said.
Tsipras is balking at pension and labor market reforms to which his conservative predecessor had agreed.
Earlier, Schaeuble said there was little chance of the euro zone reaching an agreement with Athens next week on economic reforms that would unlock bailout funds, potentially leaving Greece perilously short of money.
Greece and its creditors have said they need to reach at least an outline agreement at an April 24 meeting of euro zone finance ministers in Latvia.
Athens has signaled it may not have enough cash to keep up payments to international creditors in May, but has yet to produce a program of reforms deemed acceptable.
On Wednesday, Standard & Poor's downgraded Greece's credit rating to CCC+ with a negative outlook, citing the prolonged negotiations, suggesting it sees default as increasingly likely.
While there is the risk of Greece exiting the euro zone, Schaeuble would welcome others to adopt the currency.
"I am totally in favor of Czech Republic and Poland to join the euro zone as soon as they decided to do so," he said.
Separately, he voiced concerns the Group of Seven nations could not align over the Beijing-led creation of the Asian Infrastructure Investment Bank (AIIB).
The United States cautioned nations about joining the bank, seen as a rival to the U.S.-dominated World Bank, citing what it called a lack of transparency, doubts about lending and environmental safeguards, and concerns over Beijing's influence.
Britain, Germany, France, and Italy, four of the G7 members, joined the AIIB.
"I'm a bit disappointed we didn't find a common position in the G7," on the AIIB.
(Reporting by Daniel Bases and Gernot Heller; Editing by Lisa Shumaker)
By Daniel Bases
