& Events

Grexit? Beware of slippery slopes

Feb 18, 2015 | News

(18 February 2015) – Notre Europe-Jacques Delors Institute has just published a policy paper which discusses whether a Greek exit scenario can be considered a realistic option from political and economic perspectives.

The discussion of a Greek exit from the euro area dominates the news once again. In those debates, it seems that many people take the theoretical option of an orderly exit of Greece from the euro area for granted. But is that the case? Is an exit legally, economically and politically possible? What exactly would paths to Grexit look like and where would they be likely to end?

The policy paper confirms the legal difficulties for a member state to leave EMU and the legal impossibility for the EU to expel a member state. However, certain chains of events could lead to a situation in which Greece would introduce a parallel currency alongside the euro.

The policy paper analyses the circumstances and possible implications of such a move. It shows that a ‘de facto Grexit’ in an orderly fashion looks impossible. It would lead to tremendous financial, political and legal uncertainty.

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