The latest failure to find a formula to unlock as much as 7.2 billion euros ($8.1 billion) in aid for the anti-austerity government of Prime Minister Alexis Tsipras was accompanied by warnings about the risk of Greece’s exit from the 19-nation euro.
“The shadow of a Greek exit from the euro zone is becoming increasingly perceptible,” German and Vice Chancellor and Economy Minister Sigmar Gabriel wrote in an op-ed to be published in Bild newspaper on Monday. “Greece’s game theorists are gambling the future of their country. And Europe’s too.”
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“The continued lack of progress increases the likelihood that at its Luxembourg meeting on June 18, the Eurogroup may issue a take-or-leave deal with an ultimatum attached,” Piccoli said in research note on Sunday. “In contrast to a negotiated agreement, this would likely entail only very few concessions to Athens. This scenario, in turn, decreases the probability of Tsipras being able to accept the offer, while raising the risk of capital controls.”
