Post-Summit Commentary – Greece on the brink

The developments of recent days have been dramatic – the saga of the Greek crisis has probably opened its decisive chapter. Negotiations between Athens and its creditors failed after the Greek government decided to leave the negotiating table and hold a referendum on 5 July. The future of the country in the common currency and the potential consequences for the EU and the euro are uncertain. There are clear signs of fatigue, everywhere. But there is still time to avert the worst, if there is the political will on all sides to work on a new perspective for Greece and for the future of the Economic and Monetary Union (EMU).

While Greece seems to have one foot out of the Euro, the blame game is on its way. With one eye to electorates and another to posterity, both sides blame each other for the lack of compromise. But whoever carries more responsibility for reaching this impasse – and surely both sides have to accept their share – the highly negative consequences of Grexit for Greece, the Eurozone and for the European integration process should provide an impetus for all to find a last-minute solution.

The coming days and weeks will be the final opportunity to avoid an exit of Greece from Europe’s common currency. On balance, the Eurozone, the ECB, the IMF, and other global partners have a strong interest in preventing a Grexit, although the risk that the situation might spiral out of control is now dangerously high.