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The Financial Times newspaper quotes Athens-based bankers as saying withdrawals exceeded 1. Politics Home Parliaments Brexit. That is why the irreversibility of the euro has been a central principle of the common currency union. But it should have been further along. The leftist party was largely opposed to taking another bailout from European creditors, particularly if it would require reductions in pensions and other government spending cuts along with tax increases. It certainly could not appeal to European solidarity since its natural allies had already swallowed their austerity policies quietly, and the rest of the countries -- rich and poor alike -- had bought the narrative of Greece as lazy moochers. So far, the Greek financial crisis seems to have had little impact on the nations gambling industry.
The Growing Opposition Reportedly Elicits Changes
Banks were profiting at the expense of thousands of Europeans - in Spain and Italy, as well as Greece - left in poverty and hardship, he said. Syriza came second in inconclusive elections on 6 May, in which no party won a majority or was able to form a coalition.
Final talks to form a government failed on Tuesday, raising new concerns over Greece's eurozone future. Council of State president and judge Panagiotis Pikrammenos has been sworn in as interim prime minister to head a government until the elections next month.
Early Thursday, he appointed a senior finance ministry official, George Zanias, as the country's new finance minister and a former conservative minister, Petros Moliviatis, as foreign minister. He joked that he had read in the press that the English translation of his name was "embittered" - making him suited to be the last prime minister of a political era. The Financial Times newspaper quotes Athens-based bankers as saying withdrawals exceeded 1. The Governor of the Bank of England, Sir Mervyn King, warned that the eurozone was "tearing itself apart" and the UK economy would not escape "unscathed".
He told a news conference that the euro area posed the greatest threat to the UK recovery, and there was a "risk of a storm heading our way from the continent". The real name of one of the men believed to be behind the Salisbury attack has been revealed by a website. While Greece until the financial crisis took on debts it could not pay back, German banks are responsible for lending to Greece despite the known risks of doing so. That is the bleak political landscape that Syriza stepped into when it came to office in late January.
It certainly could not appeal to European solidarity since its natural allies had already swallowed their austerity policies quietly, and the rest of the countries -- rich and poor alike -- had bought the narrative of Greece as lazy moochers. And finally, Syriza had to reckon with the reality that Europe could use its disproportionate power to squeeze the country financially for political gain. In December , for example, the IMF and the European Central Bank decided to withhold the final tranche of bailout funding in order to pre-emptively pressure the Syriza party, which was expected to win elections.
If Greece was able to leave the eurozone without imploding, it would set a precedent that could send other skeptical countries packing if they encountered economic troubles in the future that soured them on the common currency. Suddenly, the entire European project would be in question. That is why the irreversibility of the euro has been a central principle of the common currency union. A man walks by street art in Athens calling for Greeks to vote "no" on the July 5 referendum on the creditors' proposal.
The overwhelming "no" vote in the referendum raised hopes that Greece might secure a better deal from its creditors. The opposite has turned out to be true. By showing that they were truly willing to leave the eurozone, and preparing for as smooth an economic transition as possible, the theory goes, Greece could scare the eurozone into giving it better terms.
But contrary to its public claims , the Syriza-led government was never really prepared for that possibility. The last-minute defeat of a contingency almost-Grexit plan is not surprising considering that on the eve of the referendum vote, Greek prime minister Alexis Tsipras was hoping to lose and resign his premiership, according to a July 7 report by the Telegraph based on conversations with senior Syriza officials.
The BBC even reported on Saturday that the Greek government had not coordinated any plans for a Grexit with the Bank of Greece or other key finance officials. But it should have been further along. Former Greek finance minister Yanis Varoufakis claims to have encouraged Syriza to develop a contingency plan if the European Central Bank were to stop supporting Greece's banks. Critics say his plan was not developed enough. Even if Germany was bluffing, its claims that it would force a Grexit had more credibility at the negotiating table.
Germany appeared willing to walk away from negotiations and let the Greek banks collapse, and Greece clearly was not. That would have let them ride out the imposition of capital controls long enough while they made arrangements to circulate new currency. If Germany actually wanted Greece out of the eurozone and did not respond with a better offer, Blyth reasons, Greece would at least be more prepared for life out of the eurozone and have the opportunity to reorient its economic policies without the creditors' oversight.