The runner of the "Greek escape" on the front page of the Economist

"GREXIT [as described in the international press as a possible exit of Greece from the euro] is a bad term that may soon become an even worse reality: Greece's exit from the Eurozone," the Economist said in its analysis.

The eloquent depiction of Greece's probable exit from the euro is accompanied by an analysis, according to which a Greek exit from the euro would be much more painful for the country than the internal devaluation that exists today, but also a "traumatic experience" from a political point of view. , for a state that has only recently been liberated from a dictatorship.

The ambiguous front-page title of "The Greek run" refers at the same time to the pictured runner (Athens handed over the Olympic Flame to London on Thursday), to the "exit" or "flight" of the country from the Eurozone, but also to the English "bank run" ", Which describes the mass withdrawal of deposits from banks.

According to the British conservative magazine, the Greek exit from the euro may accelerate in case of mass outflows. "If Greek banks suffer massive outflows as depositors raise their euros for fear of being converted into new drachmas, Greece's fate will be determined even sooner," the Economist writes.

The magazine refers to "rising Greek politicians and especially to Alexis Tsipras, leader of the radical left-wing Syriza party", who want to denounce Greece's agreement with the EU and the IMF. "If in the June 17 elections they get the majority, as the polls show, and if they do not keep what was agreed, then the aid to Greece will be stopped," the Economist estimates.

Eirexit, Porxit, Spaxit and Ixit

"Greek politicians need to be honest about what an exit means," the magazine said, adding that "Mr. Tsipras and his colleagues are inciting the view that Greeks can avoid austerity and stay in the euro." .

"To be precise, Greeks cannot avoid austerity either inside or outside the euro," the Economist points out. "Cut off from foreign funds, the country will be forced to enter even more suffocating austerity," with difficult if not catastrophic consequences.

"If Greek voters, however, are entitled to more honesty about 'grexit', so are the rest of the Eurozone. What does this mean; "Greece may be a small economy, but a Greek exit from the euro, under dramatically suffocating conditions, will not be a small event." An exit will cost European banks, companies and taxpayers a lot of money. "This does not take into account the risk of a general spread to weak European economies," says the Economist.

"Deposits are being withdrawn from Greek banks at an increasing rate. If the panic causes a Greek exit before the elections, it will destroy the credibility of the commitments that the banks of the Eurozone are safe. As the Greek economy shrinks within the euro,… the funds will be gone and the debt burden will be greater. "As the Greek political scene goes bankrupt, the sirens of populism will become irresistible," the magazine warns.

He continues: "These dangers require immediate action. First, the European Central Bank, in order to prevent a massive outflow, must be prepared to provide liquidity to Greek banks - increasing losses for the European taxpayer if Greece eventually leaves. "Secondly, in order to prevent the lack of confidence that a Greek exit in other regional economies will cause, the Eurozone must proceed to economic integration much faster than European politicians want to admit."

"In order to protect the banks of Portugal and Spain, European politicians need to provide some kind of guarantee for deposits across the Eurozone," the Economist said, commenting angrily: "Europeans should have started processing these "Earlier this year when the crisis was dormant, but Germany did not want it and now everything has to be done in a hurry."

A vote that will shake the cradle of democracy

"The Greek elections are in fact a referendum on whether the country will stay in the euro", a case that according to the magazine still has hopes. "A new coalition of parties committed to the agreement will receive some help from the rest of Europe. And at the same time, with the promise of a common banking support and some kind of Eurobond, it will finally begin to appear that the euro can survive and the risk of contamination can be removed. And if Greece is an isolated problem, it will be much easier to become healthy again. "

"Greece brings to the fore the hour of truth"

The epilogue is also caustic, addressed mainly to Germany. "Europe's economic restart is essential to saving the euro. Greece brings to the fore the hour of truth. And yet politicians, especially in Germany, still cannot accept this logic - let alone explain it to their constituents. "The prospect of a Greek exit means they have to start doing it - and even faster," said the British Economist.

Source: news.in.gr