Germany's Merkel Suggests Greece Could Be Dumped From Eurozone

There has been a great deal of speculation that Greece might resign its spot in the Eurozone so that it can use its own currency as a way to handle its debts or perhaps default on it sovereign obligations altogether. Germany’s chief Merkel hinted that Greece may not have that chance. The 16-member consortium may elect to expel Greece. She was vague in her statement “Members of the group must have the option of removing one of its members from the club if a country persistently breaks its fiscal rules, German Chancellor Angela Merkel “said Wednesday according to Expatica

Some economists believe that Greece has absolutely no chance of reducing its deficit enough to meet Eurozone standards. Harvard economist Martin Feldstein told Bloomberg, “The idea that Greece can go from a 12 percent deficit now to a 3 percent deficit two years from now seems fantasy.”

So, there may be a race between Greece and the Eurozone about who dumps whom first.

Douglas A. McIntyre