While the German chancellor, Angela Merkel, is publicly insistent on reaching a compromise deal that ensures Greece is saved from insolvency, expectation is rising – in Germany and elsewhere – of a Greek exit from the eurozone.
With just two weeks to go for Athens to find a solution to creditors’ cash-for-reforms demands for a 1.6 bn euro repayment to the International Monetary Fund, a Greek default – and a Grexit with it – are viewed in Berlin as ever more likely.
But the geo-political fallout from such a scenario is considered so potentially catastrophic that many believe the German government, under Merkel’s guidance, will do anything to try to avoid it.
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