The EU member state’s fiscal deficit is so high that the European Commission had to give it permission to go on top of its budget deficit. Moreover, the situation has triggered discussions about the possibility of Greece leaving the EU and the Economic and Monetary Union. As Phoebus Athanassiou, Legal Counsel of the European Central Bank, clarified, an expulsion would be legally nearly impossible. Greece would have to leave the EMU voluntarily, which would imply its exit from the EU altogether. Jean-Claude Trichet, the head of the ECB, now made it clear that none of this is really going to happen. Nevertheless, Greece is facing difficulties to get its economy in order. The consequent talks inside the Euro-zone on bailing-out Greece and possibly Italy, Portugal and Spain, who are also suffering from high debts seems unacceptable to Germany, who would be the main supporting state.

Photo : Flickr/ Mesq