November 23, 2011
Greece has one last chance to stay in the euro zone and needs an all-out effort to avoid being dragged back several decades, the country's central bank warned on Wednesday.
In a blunt snapshot of the country's precarious position, the Bank of Greece said failure to hit fiscal targets, delays in implementing reforms and a shrinking economy had undermined its earlier assessments on Greece's debt being sustainable.
A euro zone bailout deal agreed in late October may well be the "last such opportunity" given to Greece, it said.
"The country must avoid any further delays or deviations from targets at all costs; indeed, every possible effort needs to focus on overshooting the targets," the bank said in its interim monetary policy report.
"The present juncture is the most critical period in Greece's post-war history. What is at stake is whether the country is to remain within the euro area."
It predicted the economy would contract by about 5.5 percent or more in 2011, followed by a 2.8 percent fall in 2012 before returning to growth in 2013.
Unemployment will near 17 percent this year, and could top 18 percent next year, it said.
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