Grexit 'would be catastrophic for Greece'

Greek PM Alexis Tsipras has told the European Parliament that his government will present "specific" proposals to its creditors this Thursday, in a last-ditch effort to relaunch negotiations as the risk of a so-called "Grexit" grows. Greece has also asked for a new loan from its European partners. A so-called "last chance" EU summit is scheduled for this coming Sunday.

Georgios Daremas is an advisor to the Greek government. He is optimistic that Greece will be able to reach a deal by Sunday and stay in the eurozone.
Failing that, he says that the “most viable solution” in the case of a "Grexit" would be to introduce an alternative currency, such as IOUs. However, Daremas believes that this scenario “would be catastrophic for Greece”. He warns that a dual currency system would lead to a black market in euros and that the new currency’s value would likely depreciate quickly, leading to high inflation.

Visit our website:
http://www.france24.com

Like us on Facebook:
https://www.facebook.com/FRANCE24.English

Follow us on Twitter:
https://twitter.com/France24_en