According to a senior Obama administration official, the “unclear outcome” of the Greek elections on May 6 makes it even more “complicating” for the attempts of the country officials to put an end to the Greek debt crisis.
Washington Post reports that the “Obama administration is closely monitoring the statements and actions of Greek political leaders after the elections.” But he added that, despite the political uncerainty of the country, Greece has to proceed with the already agreed financial reforms.
American officials discussed the potential with Obama, whether Greek leaders might form a viable coalition government or not. The Greek government has to deal with several problems and negotiate with the European Central Bank, the IMF and the EU. The new leaders should be operational, according to the US official, speaking on the condition of anonymity to talk freely about sensitive economic issues.
The article states opinions of prominent economists, who express fears about a world with “instability turmoil,” should Greece exit the Eurozone. Some of them claim that a short-term exit would cause many problems on the markets.
On the other hand, Nigel Gault, chief US economist at IHS Global Insight, said that “if Greece decides to continue with its austerity plan, it will likely mean greater stability but a long period of economic stagnation.” And he added that “either alternative is bad. One is much worse in the short run but has the possibility of things getting better in the long term.”
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