Greek stalemate may lead to euro exit

Greek stalemate may lead to euro exit

Some political parties in Greece will sharpen their calls for euro withdrawal in the run up to a potential second election, according to Iain Anderson, president of Cicero Consulting, speaking to Global Investor/ISF.

The prospect of a second election in June is becoming increasingly imminent after attempts to create a coalition government have consistently fallen over the past few days.

“Parties can’t go in with the same policies, and I think we’ll see a sharpened call for euro withdrawal from some of those Greek parties,” said Anderson.

There has been much public debate over the pros and cons of Greece leaving the eurozone for many months, but Anderson believes that it is now inevitable that Greece will leave.

“It’s not a case of if but when Greece exits from the euro and about making sure it’s an orderly exit rather than a messy one.”

Anderson’s hypothesis could become reality after the German chancellor Angela Merkel said yesterday that while she wants Greece to stay in the eurozone, it could end up having to leave if it does not accept the austerity measures demanded by the EU and the International Monetary Fund (IMF).

Progress is hoped to be made at a meeting today in Berlin between Merkel and France’s new president Francois Hollande to discuss the future of the eurozone. However, given Hollande’s anti-austerity stance, it will be interesting to see whether the meeting will be “friendly and conducive or simply turn into shouting match”, said Anderson.