Exposed to external risk
As the last couple of days have made evident, Greece’s return to international markets will not be a smooth ride, and let’s not even get started on talk of a so-called “clean exit” from the bailout programs.
Government officials on Tuesday decided to postpone this week’s planned seven-year bond issue due to the turmoil on global markets, although other countries chose to ignore the fierce volatility and sudden sell-off of stocks.
The fact is that Greece remains extremely vulnerable to outside factors. This means that pompous talk of a “heroic exit” from the memorandum should be avoided. Rather, officials should be more concerned about safeguarding the Greek economy against the threat of outside shocks.
Such measures will be crucial, particularly after the country loses the creditors’ protection.