The German edition of the Wall Street Journal (WSJ), suggests that a Greek exit (Grexit) from the euro is still imminent. This time the Drachma scenario is being resuscitated not because the economic crisis in Greece is getting worse. Quite the contrary, the fact that the Greek economy seems to recovering with slow but steady steps may in their opinion, lead to Grexit.
According to the WSJ, “the key-factor that economists take into account in order to determine whether Greece will stay within the eurozone or return to the Drachma is the country’s dependence on its creditors. Now that Greece has achieved a primary surplus, returning to the Drachma would be possible.” The article continues, “if those in favor of Grexit were the majority in Greece, then the best time to return to the Drachma would be the early stages of 2014.”
Such a step, according to the German edition of the WSJ, would invigorate Greece’s economy. Greece is entering its sixth year of recession and there are no signs of recovery any time soon, despite the optimism of the Greek coalition government. An optimism that European officials and the OECD do not seem to share as they predict further economic recession for Greece.
Despite this, the WSJ underlines that Grexit would cause a severe shock in European and international financial markets.
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