Is Grexit back on the table? – BBH

By FXStreet FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the
defying the expectations a few months ago, Greece remained in the Economic and Monetary Union.

Key Quotes:

“It recently succeeded in implementing sufficient reforms to earn another tranche of aid. However, the entire exercise exhausted whatever trust there may have been. It has also further soured Greece’s attitude toward the EU. This leaves officials ill-prepared to deal with other issues.

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.

Greece (and Italy) are frontline states for the people fleeing Syria, Libya, and other parts of Africa. They have complained of not receiving sufficient support from the other European countries. However from the EU point of view, the real situation is more like the old adage of taking a horse to water, but unable to make it drink.

The issue, they …read more

Source:: FX Street