Don’t pack away the currency presses just yet, Greece’s euro exit may be back on the table next year.
There’s still a danger that Greece will be forced out of the euro region by the end of 2016, according to 71 per cent of respondents in a Bloomberg survey of 34 economists. Seventy per cent said they reckon Greece should be safe for the rest of 2015, though almost half said they thought the 86 billion-euro (US$93 billion) bailout package Prime Minister Alexis Tsipras is targeting will prove to be too small.
Dutch Finance Minister Jeroen Dijsselbloem raised the possibility of using capital controls to prevent Greece from leaving the euro, the most explicit mention of that option to date by a top European policy maker.
Not even during the 2012 European debt crisis has Greece’s place in the Eurozone been more tenuous. Greece will seek about 10 billion euros (US$11.3 billion) in short-term financing as it tries to stave off a funding crunch.
Its bailout program – worth about US$272.5 billion in international loans in exchange for structural reforms – expires on February 28.
There's an amusing pair of headlines back-to-back today on what a Greek exit from the Eurozone might mean. One view is catastrophic, the others is along the lines of no problem. Let's start with the catastrophe.Economic historian Barry Eichengreen says Greek Euro Exit Would be ‘Lehman Brothers Squared.
FRANKFURT, Germany (AP) — Talk of Greece crashing out of the euro is back. And the question of whether Europe can handle another crisis in Greece is heightening financial uncertainty for the currency union just as it is struggling to grow and create jobs. Some analysts and politicians say Greece 2.0 wouldn't be as rough on the eurozone as the original Greek crisis and default in 2010-2012.
Brussels (AFP) - Fears of a Greek euro exit have returned with a bang after Athens called early elections on Monday, but steps taken after the financial crisis should stop the rest of the currency zone imploding, analysts say.
A small dose of reality has set in for a group of European central bankers: Euro Officials Begin to Weigh Greek Exit as Euro Weakens.
Greece’s possible exit from the euro moved to the center of Europe’s financial-crisis debate, rattling markets as authorities in Athens struggled to form a government.
As the days progress, the strategy of George Papandreou has become increasingly clear. He does not like the terms forced on him by Eurozone bureaucrats especially French president Nicolas Sarkozy and German Chancellor Angela Merkel.Not only is he fed up with Eurocrats, he is fed up with Greek protests as well as pressure from political opposition.