Greece keeps on being mentioned in European headlines. It seems like there is some kind of remission after the Greeks celebrated the “victory” over further austerity and the finance minister’s resignation.
Well, it is difficult to figure out what is going on when a Eurozone outcast setting neck-deep in debt becomes some kind of a bully. It is likely that the bullying is not what other Eurozone nations are going to tolerate. With that in mind it seems like the so-called Grexit is near.
At this point, of course, there has been no official claim to quit the Eurozone. Even though 70% said NO, the remaining 30% wanted to compromise in order to save the day for Greece. Alexis Trispras is now ready to resume the talks wit the lenders in order to find anther way out of the situation since no austerity is going to be introduced according to the will expressed at the recent referendum.
Still, more and more experts say that the range of opportunities is now limited as the likelihood of a compromise is extremely low. Apparently, if Greece does have to quit the Eurozone, this is not going to harm the Eurozone economy in general since the Greek share is miserable – 1-1,5%. Still, they say that the Grexit may be beneficial for the Eurozone in the long run even if Greek doesn’t pay its debt.
At the same time, the Grexit (if any) is going to crash the Greek economy with further disastrous consequences for the Greek people. At this point, local folks do not seem to understand it while being proud of a shady victory and waving Greek and Russian (this looks weird) flags.
Still, despite the current stat of affairs, the IMF is still eager to find the solution to save Greece. Christine Lagarde, Managing Director of the IMF, says that the IMF may resume the talks if Greece wants it and asks for it.
Meanwhile, European leaders also express their concerns over the results of the recent Greek referendum. It looks truly weird of to take into consideration the insolvency of Greece and the limited set of alternatives it has due to this fact. The leaders are to hold another summit today to try and work out an emergency solution. Some experts say that the leaders of Germany, France and other Eurozone powers may eventually end up with the decision to exclude Greece from both the Eurozone and even the EU.
It should also be noted that the world’s most influential financial institutions are already acting with a glance to the high likelihood of Greece quitting the Eurozone, thereby adjusting their basic scenarios to this possibility. In particular, one of such banks has just upgraded its forecasts – the chances of a Grexit are increased from 40% up to 55%.
In the meantime, the Greek government has seen a change. Yanis Varoufakis resigned from his post of the Minister of Finance of Greece. He was changed by Euclid Tsakalotos, which is now called “another kamikaze”. He instantly started his campaign to draw Greece out of the crisis.
At the same time, Yanis Varoufakis is now planning to focus on his hobby, which is music.
By the way, they say that the current crisis in Greece is beneficial for Russia. Still, the Greeks are not as silly as they might seem. So it is too premature for the Russians to gloat over the misfortunes of the Eurozone.
The new group of negotiators from Greece are planning to resume the talks with the IMF, which is expected to put an end to this never-ending game. Meanwhile, we should keep in mind that the Greeks are sick and tired of all this and want to live their lives as without crisis, which may eventually end if the parties do compromise on new conditions.
