He also said that it was "premature" to discuss a second aid package to Greece before it had implemented the reforms required to disburse the next tranche of the first package.
“The next tranche can be paid only when the conditions have been met. There is no room for maneouvre here,” he told the Bundestag on Wednesday evening.
According to a document released by the Bundestag lower house on Thursday, he described Greece's financial situation as being on a "knife edge".
Addressing the Bundestag on Thursday, in a speech urging German lawmakers to support the latest euro rescue package, Schauble pledged Germany's support to Greece but warned that the country "will have to do its part".
Going one step further, Schauble said that Greece's failure to comply could also have an impact on the second bailout scheme agreed for the country.
"The debate over a second aid package to Greece is very premature given the current difficulties around the payment of the first package," said the minister.
Repeating that "the situation in Greece is serious" and conceding the difficulties involved in reducing the deficit, Schauble nevertheless underlined that it was "up to Greece" to take the necessary action.
In statements to the German radio station Deutschlandfunk, Schauble had said that Greece had "to meet the conditions that exist for participation in a common currency" and had warned that there could be "no exceptions".
The minister's tough stance is echoed and amplified by hardline politicians in Germany but the issue of Greece's departure from the Eurozone is still taboo for current German Chancellor Angela Merkel, who earlier this week assured her MPs that no single country will leave the eurozone as long as she is chancellor.
Disbursement of the next tranche of 8.0 billion euro, out of a total package of 110 billion euro agreement with the International Monetary Fund and European Union, has been cast into question last week after European Commission, European Central Bank and IMF inspectors in Athens found that Greece looked set to miss the required fiscal targets.