Groping towards Grexit

Economist
May 15, 2012

Even in a grouping as fractious as the euro zone, tonight's falling-out was remarkable. Jean-Claude Juncker, who presides over the zone's finance ministers, lashed out at the many figures who have more or less openly threatened Greece with expulsion from the euro if it does not abide by its programme of economic reforms and austerity measures.

With Greece in deep political turmoil (some are even talking apocalyptically of civil war) after voters backed an incoherent constellation of anti-austerity parties, European central bankers and finance ministers have been warning it that its departure from the euro is inevitable if it does not abide by the terms of its bail-out.

One of the bluntest warnings came from the president of the European Commission, José Manuel Barroso, who told Italy's SkyTG24: “If a member of a club does not respect the rules, it's better that it leaves the club—and this is true for any organisation or institution or any project.”

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