Grexit Grumblings: Germany Open to Possible Greek Eurozone Exit

The eurozone has economies in flux. Lithuania celebrates entry while Greece ponders an exit. Greeks vote in parliamentary elections on January 25 and many resent austerity measures imposed by Germany and other neighbors, explains an article in Spiegel Online: “the North-South conflict's focus is the German-designed austerity and reform program that all crisis countries have had to adopt in order to become eligible for billions in bailout money from EU funds.” Leftist candidates in Greece are making campaign promises that would likely require more borrowing. Other European leaders blame the nation for the eurozone’s malaise and are in no mood for more bailouts, rescue packages or complaints about austerity. Portugal, Ireland and Cyprus endured reforms and have improved budget outlooks. Fears about a “domino effect,” the article notes, have been replaced by relief over "chain theory” – “which holds that the entire chain would become stronger were its weakest link to be eliminated.” An exit from the currency could dissuade other states to avoid reckless borrowing and spending, though some investors fear that severe austerity can lead to extremism. – YaleGlobal

Grexit Grumblings: Germany Open to Possible Greek Eurozone Exit

Greece has become Europe’s problem child; Germany no longer dreads a Greek exit from the eurozone, and many wonder why the exit wasn’t planned sooner
Nikolaus Blome, Giorgos Christides, Christian Reiermann and Gregor Peter Schmitz
Tuesday, January 6, 2015
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