Although the Greek crisis shook confidence in the euro area, European Central Bank Vice President Vitor Constancio said on Wednesday in Frankfurt that ejecting Athens from the currency was “never for real” because it would not be legal and Europe now has to erase any lingering doubts about the bloc’s viability.
The new Greek government, due to take office after Sunday’s elections this month, must commit to the 85-billion-euro bailout deal and if the program stays on course, the easing of capital controls may not be far off.
“The stage is set for a gradual dismantling of the capital controls,” Constancio said.
“They will be eliminated as they were in Cyprus.”
He added Greek debt should not be viewed in simple ratios and he expects views, including those of the International Monetary Fund, to converge when debt sustainability is discussed in the first review.
“A haircut has been refused by the member-states and I certainly hope it will not be necessary in view of the numbers,” Constancio added.
“The more one digs into the numbers, the more that sort of conclusion seems to emerge.”