Brussels shaken as new Greek leader challenges Europe’s austerity drive

Germany is seen as the driving force behind austerity.  Government officials have stated that it may be better for Greece to leave the euro currency – but that is posturing to the German public, says Christian Odendahl of the CER.

“Angela Merkel herself is a very careful politician,” he said.  “So before considering a eurozone exit she would need to be sure that it does not have negative implications for the rest of the eurozone.  And I can not imagine that she is sure of that, so I do not see German politicians pushing actively for a eurozone exit of Greece.”

The costs of a Greek exit may be too high for both Athens and Brussels, agrees Dionyssis Dimitrakopoulos.

“It is in nobody’s interests, and that concerns not only Greece but also Germany, France and so on, for Greece to withdraw from the eurozone,” he said.  “Because the next question will be, ‘who will be the next country to withdraw?’”