How Greece Can Make It Through 2015
A supporter of the New Democracy party before a pre-election rally by the party leader and Greek Prime Minister Antonis Samaras, in Palaio Faliro, near Athens on Jan. 23, 2015.
Photographer: Kostas Tsironis/BloombergGreece won’t exit the monetary union this year, in our judgment. The country’s near-term financing gap is small relative to the size of the financial aid it has received in the past, and the will to keep the union together remains strong. We expect Greece and its creditors to find a mutually acceptable list of reforms to unlock the funds needed to keep the beleaguered country afloat. Past experience suggests that agreement could be reached at the last possible moment -- just before a repayment must be made to the International Monetary Fund. Still, as the timeline grows tighter, the risk is rising that European leaders might run out of patience and trigger a messy exit from the euro area.
The Next Deadline