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.
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