Publication

This bulletin examines the costs and consequences Germany and the rest of Europe would face if Greece left the eurozone. The author argues that a Greek exit is an unfavorable scenario for Germany as it would not only threaten German economic interests but would also weaken the country's political leadership in the EU. The best situation for Germany, and other members of the eurozone, he suggests, is one in which 1) negotiations over Greece's debt can be prolonged and 2) while negotiations continue, Greece is given sufficient support to ensure it can meet its financial obligations, but nothing more until it accepts a reform program.