Grexident

Can Greece be Saved?

GreeceBurningFlag-bartrow-Fotolia
Greece could still go up in flames.
  • Why it matters

    Why it matters

    Greece’s irreconcilable differences with the rest of the euro zone make a Greek withdrawal from the currency seem more and more likely.

  • Facts

    Facts

    • Greece was supposed to achieve a primary budget surplus of 3 percent of its economic output in 2015.
    • The ECB will not be buying any Greek bonds under its massive new bond-buying program.
    • Greece’s economic output is a quarter lower than it was in 2008, and unemployment is at 25 percent.
  • Audio

    Audio

  • Pdf

There is much wordplay to describe the ongoing Greek crisis. At the moment, the one Europe fears the most is a so-called “Grexident.”

Fears that Greece may be forced to exit the euro zone – whether on purpose or by accident – have once again gripped the European continent, and especially the 19 member countries that have adopted the euro.

Despite a temporary aid deal reached at the end of February, officials in Berlin and Brussles fear that a permanent solution to the Greek crisis – one that avoids Greece becoming the first country to exit the currency bloc – is looking further away than ever.

Greece’s budget could slide back into deficit this year, Klaus Regling, the head of Europe’s bailout fund, the European Stability Mechanism, said in an interview with Handelsblatt.

The European Central Bank is not providing much help at the moment. While its president, Mario Draghi, on Thursday said a massive bond-buying program for the euro zone would begin Monday, he acknowledged the ECB will not be buying Greek government bonds.

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