The EU has taken a hesitant but crucial step towards its own integration and the survival of the Euro. Through the provision of bank guarantees, the vicious circle between latent currency instability and deposit runs may have been broken. Bankia may be relieved that it will not be run into the ground by Spaniards’ fear of a Euro-exit.... Continue Reading ...

After a narrow electoral victory, centre-right ND is in the process of forming a coalition government with centre-left PASOK and left-wing DIMAR, with an aim to renegotiate the MOU and remain in the Euro. Its medium term prospects remain bleak. The politics remain messy, the underlying structural issues persist, and Greece is in a contraction spiral that reduces its tax receipts and social security contributions. The government coalition will also rest on parties and people responsible for this mess, making the chances of a real turnaround doubtful. Greeks may have bought another summer in the Euro and the Eurozone may have bought time to better prepare for a potential Grexit.... Continue Reading ...

While Greece is teetering at the edge of chaos, Michael G Jacobides argues that neither Greek parties nor the EU or the IMF are focusing on the real problem.... Continue Reading ...

London Business School’s event, Greece-Options Going Forward took place on 18 January 2012 in Athens and was streamed live to London Business School and over ten leading universities around the world. The event consisted of three expert panels and messages from London Business Schools’ Economist, Richard Portes and Greek Minister of the Interior, Dr. Tassos Giannitsis. ... Continue Reading ...