Angela Merkel has realized that a Grexit is back on the cards, posing a considerable security and geopolitical risk to the European Union; so far, the Chancellor's fear may turn her into Greece's unlikely guardian, deems European markets reporter Mike Bird.
"The potential for a Greek exit from the Eurozone has probably never looked this real. The government is running out of cash and doesn't seem to have enough for its next International Monetary Fund payment," the reporter noted, adding that the situation will eventually cause a "disorderly Greek exit from the Eurozone."
Germany's foreign office shares Merkel's stance, fearing that Greece may sink into "turmoil and chaos" and even turn to the Kremlin, "all because of a few billion euros."
At the same time, there is another fact that is obviously adding fuel to the fire: according to the journalist, if Athens is plunged into chaos caused by a new round of recession or a painful currency switch, it will be unable "to police" the increasing influx of migrants including former ISIL jihadists arriving from North Africa and the Middle East.
Pointing to the fact that Germany collected about €1 trillion ($1.09 trillion) in tax revenue last year, Mike Bird underscored that "Germany's total exposure to Greece runs to just over €70 billion from the two bailout programs and other implicit loans. So that's 7% of one year's tax take, or less than 2% of Germany's GDP."
Roubini says he expects ‘Pots of money will be found’ for #Greece as both sides realize #Grexit would cause damage. (BBG)
— Holger Zschaepitz (@Schuldensuehner) 28 мая 2015
In the face of these security risks Germany's financial worries are paling into insignificance, the journalist noted, adding that the country might ultimately find itself "wishing it had simply paid up."
i'm confused: is #greece threatening the eurozone with #grexit or is the eurozone threatening greece with grexit?
— Diane Shugart (@dianalizia) 25 мая 2015