Economist: The Greek run

Derek Bacon
“GREXIT” is an ugly term for what may soon become an even uglier reality: Greece’s departure from the euro zone. As fury in Athens runs up against frustration with Greek recalcitrance in the rest of the European Union, the EU’s most troubled economy could be heading out of the single currency within weeks.

LONDON. (ECONOMIST). It is not a good idea for Greece to leave the euro. But it is time to prepare for its departure “GREXIT” is an ugly term for what may soon become an even uglier reality: Greece’s departure from the euro zone. As fury in Athens runs up against frustration with Greek recalcitrance in the rest of the European Union, the EU’s most troubled economy could be heading out of the single currency within weeks. If Greek banks suffer a mass run, as depositors withdraw euros for fear they will be forcibly converted into new drachmas, Greece’s fate could be settled even sooner.

Greece’s ascendant politicians, particularly Alexis Tsipras, leader of the radical left Syriza party, want to repudiate Greece’s rescue deal with its European and IMF creditors. The creditors, particularly Germany, are standing firm, rightly making clear that they will not be blackmailed into repeatedly rewriting bail-outs.

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May 18, 2012

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1. Nicholas Kostopoulos wrote on May 18, 2012 9:55 AM	The rest of Europe is in the denial mode, that Greece can't leave without collapsing as a country. If staying in means collapsing, and going means collapsing, isn't it logical that Greece collapse by its own hand. As it is Greek citizens have a great disgust, with what the ECC, and especially Germany has done to them. A reason why the German politician's car was recently destroyed. What a stupid thing to do, but frustration breeds stupidity. They may make it to have a firewall against the consequences, but it may accelerate the end of the ECC. The result can be a waterfall effect to the ECC total collapse.

2. Philip Vorgias wrote on May 18, 2012 1:25 PM	Being angry with the bailout plan doesn't justify commiting national econmomic suicide-simply because it's down by one's own decision-Nicholas. That's ridiculous. Frustration certainly breed stupidity-and Greeks are acting mighty stupid lately. They may learn very soon that 20% unemployment beats 30-40% unemployment.
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Sunday, May 19, 2013 Last Update: 12:42 AM ET

Economist: The Greek run

May 18, 2012

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