German Economy Online

Wednesday, June 17, 2015

Debt Crisis: The majority of Germans want the Grexit – ZEIT ONLINE

17th June 2015 03:32 clock

ATM in Athens, Greece

ATM in Athens, Greece | © Alkis Konstantinidis / Reuters

A clear majority of Germans is in favor of a withdrawal of Greece from the Euro zone. According to a new survey conducted by YouGov would prefer 58 percent that the threatened with state bankruptcy country leaves the euro. 28 percent want to keep Greece in the euro. 14 percent have no opinion or did not specify. For probably hold 49 percent of an exit, 41 percent believe it is unlikely.

A Greek exit from the euro could destabilize the opinion of the US-American economist Dennis Snower Europe. “A Grexit would be very risky, and above all the political consequences can be estimated hardly,” the president of the Kiel Institute for the World Economy said. After returning to the drachma and a state bankruptcy Greece could move again only with a waiver of the repayment of its debt burden, as well as with European funding. If a Grexit would not cushioned by Europe, Greece threatens to become a politically and economically unstable country. Of then went even threats to the economic and political stability of the rest of Europe, so Snower.

Meanwhile, the tone between the Greek government and the EU tightened further. President Jean-Claude Juncker accused the Greek government of having twisted his words. “I throw to you to have the Greek people say things that are not consistent with what I said the Greek Prime Minister,” he said. The debate both in and outside of Greece would be easier if the Greek government would reflect exactly what the Commission actually proposing. The Greek Finance Minister Yanis Varoufakis dismissed the accusations and said: “Juncker has either not read the documents he gave Tsipras or he has read it and forget it.”

Previously Tsipras had donors humiliation and power games accused. Demands for further austerity measures he would not budge. This included an increase in the value added tax of ten percent on power, as he told MPs of his party.

Greece is under extreme time pressure. On June 30, the second rescue package runs out, which still contains 7.2 billion euros. Creditors want to pay the money only to commitments under the reform of the government. Greece does not receive the money, threatening the first bankruptcy of a euro country.

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