Speculation has been rampant recently that a Greek exit from the Eurozone is more likely than ever. But Bloomberg columnist Simon Kennedy doesn’t buy it.
Don’t be fooled by claims from German leaders that they could live with a Greek exit, he says. It’s all so much rhetoric to ease the frustrations of a population fed up with continued aid payments.
Evidently ordinary Germans aren’t looking at the right numbers.
“[T]he status quo is a boon for Germany economically and politically. Indeed, the biggest European economy benefits more than most of its fellow euro members from the single currency. While a Greek departure alone may not end the euro, the risk would be of contagion through the bloc’s financial markets that forced others out.
“If it had to return to the deutsche mark, German exporters, which account for about half of gross domestic product, would become much less competitive and Merkel’s prized current-account surplus would shrink. Inflation would weaken further.”
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