Politics & Current Affairs — September 12, 2011

Germany Readies for Possible Greek Default

The rest of the euro zone is losing patience with Greece. Germany is even working on scenarios exploring what would happen if Greece left the euro zone.

bigthinkeditor

What’s the Latest Development?

The rest of the euro zone is losing patience with Greece. German Finance Minister Wolfgang Schäuble is no longer convinced that Athens can be saved from bankruptcy. His experts at the Finance Ministry have been working on scenarios exploring what would happen if Greece left the euro zone. After 18 months of crisis, there is still no improvement in sight there.

What’s the Big Idea?

Key economic figures are worsening, and there are growing doubts over whether the Greek government truly understands how serious the situation is. German leaders are facing up to the inevitable and thinking the previously unthinkable: Greece is going bankrupt, and not even its withdrawal from the monetary union can be ruled out anymore.

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