Grexit: Back on the table? – BBH

By FXStreet FXStreet (Delhi) – Research Team at BBH, suggests that defying the expectations a few months ago, Greece remained in the Economic and Monetary Union but the entire exercise exhausted whatever trust there may have been and has also further soured Greece’s attitude toward the EU.

Key Quotes

“The refugee challenge is such an issue. The Financial Times reported that some EU officials are threatening to suspend Greece from the Schengen Agreement, which allows for passport-free travel since 1985. At the heart of the issue is Greece’s inability or unwillingness to tighten its borders and registration of the some 700k refugees.

The home affairs ministers will meet before the weekend. The idea is that Greece will be given until the heads of state summit in the middle of the month to begin addressing these deficiencies or proceedings will begin, which could take three months, that would lead to Greece’s suspension from the Schengen Agreement. To be sure, this agreement is not the same as EMU, so it would not be a Grexit in that sense.

Why is Greece dragging its feet? There appear to be technical and political reasons. …read more

Source:: FX Street