Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
European Tribune - The Greek deal opens for expansionist e-currency
Since this gives a better negotiation position to the Greek government, I would say it also decreases the risk of Greece being forced out.

Nobody has argued against this, so I guess I had a point, even if it was mostly arguing by gut feeling.

To try to go beyond gut feeling, lets look at the main actors.

Eurogroup majority. Goals: continued austerity, not losing face. Tools: threat of Grexit.

Greek government. Goals: ending austerity, staying in power. Tools: power of Greek state aparatus.

If the power of Greek state aparatus makes the threat of Grexit less useful, I would say the best option for the eurogroup majority would be to makes noise to save face and not try to kick Greece out.

I must say that the last months actions has made it clear that my view of what it means to kick Greece out was incomplete.

Means to kick a country out of a currency:

  1. Withdraw backing for state debt - done long ago
  2. Not accept state bonds as security for banks loaning from central bank - done in janury
  3. Liquidity support to banks - not gone yet
  4. Drum up bank run - on hold for now

Does the list go on? What could ECB and or the eurogroup do if it really, really wants Greece to start using something otehr then euros?
by fjallstrom on Mon Mar 2nd, 2015 at 08:26:18 AM EST

Others have rated this comment as follows:


Top Diaries

Occasional Series