At the next EU summit in October, politicians will face the possiblity of Greece exiting the eurozone. Grand ideas of European solidarity are less likely to be at issue than the question how smooth an exit could be.
There are arguments for and against a Greek exit from the eurozone.
The fact is, the country has not come close to achieving previously agreed-upon consolidation goals. If the euro crisis is a crisis of confidence, some of it would be regained if donor countries drew the consequences and turned off the money faucet. On the other hand, Athens cannot meet meeting savings targets since rigid austerity policies have entrenched the economy more deeply in recession than anyone expected. Another question is if the new Greek government deserves a chance to put their reform plans to the test.
When reviewing whether Greece should return to the eurozone fold or be forced out, the pervasive issue is whether a Greek exit would be manageable. If you go and ask the experts, you'll be even more bewildered than before. The pundits have widely differing opinions, and moreover, no one can make accurate predictions since the EU has never been in this situation before.
Read more: Possible 'Grexit' a calamity or coup for the eurozone? | Europe | DW.DE | 25.08.2012
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