Wednesday April 1, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece, the euros sacrificial lamb?

By Alexis Papachelas

Treating debt-wracked Greece as the sacrificial lamb of the eurozone could have dangerous and unintended repercussions.

The more pragmatic American observers claim to be stunned by the manner in which hardline German officials are dealing with their southern European partner. Having experienced the Lehman crisis and its unpredictable fallout, American officials are warning Berlin that a Greek euro exit would not be a simple affair.

Officials on the other side however argue that the markets have already priced in the scenario, thus easing its impact on the global financial system. Also, they think that the crisis is not likely to spread to the rest of the continent.

US officials are shocked at the stubborness of their German counterparts. They are particularly worried that the hardline view is shared by high-ranking officials at the European Central Bank.

To be sure, the Americans have their own reasons to see things differently. First of all, its not their money that were talking about nor do they have to face pressure from their local electorates. Secondly, they fear that a collapse of the euro would impact on the US economy, also ahead of a national election.

That said, theres only so much that they can do. They are putting some pressure on the International Monetary Fund, they are constantly speaking with German officials, and are urging Greece to meet its commitments -- all that ahead of Berlins decisions in September.

Recently, an experienced US analyst spoke of a rather worrying exchange that he had in Berlin. The American had supposedly argued in front of some German officials that it would be cheaper to back Greece for a while longer since it was nearing the end of its fiscal tunnel, rather than shoulder the big, and quite unpredictable, cost of a euro exit. Their response was that, first, Greece should be punished for not making good on its pledges and, secondly, that the markets would be stunned by a possible Grexit and therefore make things easier for the eurozone to support the rest of the debt-hit periphery.

The coming weeks will show whether German Chancellor Angela Merkel has in fact decided to cross the Rubicon. In other words, it will become clear if she intends to raise the bar too high for Greek politicians and, more importantly, for the people. If she decides its over for Greece, the implications for the country would be devastating. We must quickly find out where we stand in order to hammer out our bargaining strategy and all contingency scenarios.

ekathimerini.com , Saturday August 11, 2012 (15:33)  
Going his own way
Righting the wrongs
Amateur antics or overstepping the mark?
A pointless debate
PASOK calls for former PM to be first witness in memorandum probe
Socialist party PASOK on Wendnesyda suggested that former conservative Prime Minister Costas Karamanlis (photo) should be the first witness called to face a parliamentary committee expected ...
Greek air traffic controllers call for radar system upgrade
Greece's air traffic controllers' union is calling for an urgent upgrade of the country's air traffic radar system and for more staff to be hired to handle the increasing number of tourists ...
Inside News
ECB to review Greek bank liquidity after March deposit drop
European Central Bank policy makers will consider extending their lifeline to Greek banks on Wednesday after the countrys lenders lost deposits for a sixth month. The ECBs Governing Counci...
Buffett says Greek exit from euro may not be a bad thing
Billionaire investor Warren Buffett said the euro region could withstand Greeces departure from the currency union. If it turns out the Greeks leave, that may not be a bad thing for the eu...
Inside Business
BASKETBALL
AEK could get a wild card to the Euroleague
AEK shows capable of climbing as high as third in the Basket League, as its 16-point home win over third-placed Aris on Sunday confirmed it can challenge both Aris and PAOK to the first spot...
SOCCER
Cyprus soccer eyes reunion after 60-year divorce
Turkish Cypriot soccer officials on Monday vowed to press ahead with attempts to reunite with the Cyprus Football Association, (CFA), triggering a political storm on the ethnically-split isl...
Inside Sports
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. PASOK calls for former PM to be first witness in memorandum probe
2. Greek air traffic controllers call for radar system upgrade
3. African envoy expresses concern over EU migrant center plans
4. Germany expects, at best, an interim assessment from Greece call
5. Ex PM, socialist heavyweights to testify in Tsochatzopoulos trial Apr 29
6. Fifteen detained as anarchists stage protest in Parliament courtyard
more news
Today
This Week
1. Finance Ministry officials to discuss talks progress as EU pushes for action [Update]
2. Athens aims to tighten ties with Russia
3. Going his own way
4. Greek economy minister sees deal with EU/IMF on reforms next week
5. Spike in migrants reaching Lesvos
6. Buffett says Greek exit from euro may not be a bad thing
Today
This Week
1. Next Monday is D-Day for state funds
2. Eurogroup unlikely to be held soon to discuss Greek reforms
3. Moscow expects progress from Tsipras visit
4. Some more equal than others
5. Greece to present reforms by Monday, says gov't spokesman [Update]
6. Greece optimistic on deal with euro area next week
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.