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.