The legal basis for forcing a member out is shaky: the European commission needs to debunk the ‘Grexit’ assumption and rediscover its role as guardian of the treatiesMonths of arguments about the Greek financial crisis have this week cumulated in a highly emotional debate about a possible Grexit. As Athens will be unable to satisfy its financial obligations after a default, many hardliners expect Greece to leave the eurozone, and printing as much neo-drachma as necessary. Some see this as the only solution to the Greek crisis: it would allow Greece to devaluate its new currency, supposedly making the country competitive and resulting in economic growth and the ability to repay its debt. Others are more sceptical: they fear that the new drachma would be an obstacle to trade, increasing the cost of imports and making it impossible for Greece to ever repay anything. Related: Greece crisis: US urges compromise after Greek PM attacks IMF - as it happened Continue reading...
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