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On the Horns of a Dilemma: Merkel Fears Grexit to Play Into Russia's Hands

© AP PhotoGerman Chancellor Angela Merkel (right) and the Prime Minister of Greece Alexis Tsipras (left)
German Chancellor Angela Merkel (right) and the Prime Minister of Greece Alexis Tsipras (left) - Sputnik International
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German Chancellor Angela Merkel is facing a painful dilemma, whether to allow Greece to leave the Eurozone and so far push it into Moscow's warm embrace, or to write off Greece's debts.

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."

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Citing Charles Grant and Christian Odendahl from the Centre for European Reform, Mike Bird stressed that Angela Merkel is currently under pressure from the Obama administration which expressed its concerns about the risk of a Russo-Greek rapprochement, and at the same time points to Greece's geo-strategic importance for NATO.

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."

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Indeed, Greece, an Orthodox country, has long been considered a historical ally of Russia and its exit from the Eurozone will prompt further rapprochement between the states.

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. 

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Remarkably, 27,000 refugees and asylum seekers have already arrived in Greece since the beginning of 2015, according to Integrated Regional Information Networks (IRIN) humanitarian agency.

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."

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."

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