World Economy

Grexit Seems Real

Grexit  Seems RealGrexit  Seems Real

The potential for a Greek exit from the eurozone has probably never looked this real. The government is running out of cash and doesn’t seem to have enough for its next International Monetary Fund payment, Business Insider reported. Missing a debt payment could push the European Central Bank to withdraw support from Greece’s banking system and eventually cause a “Grexit” — a disorderly Greek exit from the eurozone. This would have major implications not just for the well-covered economic issues but for European security too: Greece has historically had close ties with Russia. And it looks like German Chancellor Angela Merkel is getting concerned about those security risks. On May 19, Bloomberg suggested that Merkel was preparing a defense of continued German support based on geopolitical lines. Now that’s becoming a point of interest in the German press too. Reports in Die Welt suggest that Merkel and Finance Minister Wolfgang Schaeuble are split on the issue of Grexit — he seems to be unworried about the possibility.