(Boursier.com) – Fears of a Greek exit from the Eurozone has already done much damage to the country. Capital outflows have accelerated since the takeover in late January, the radical left Syriza, who refused to continue the implementation of the European Union’s support plan, ECB and IMF. This deadlock has exacerbated the economic crisis in the country and prevented the payment of the balance of international aid (€ 7.2 billion) by creditors of Athens …
The flows Outgoing capital has reached considerable amounts since the beginning of the year: 12.25 billion euros in January, 7.57 MdsE in February, 1.91 MdsE in March before rising to 4.89 MdsE in April. For a single day, Monday, June 15, it was 400 million euros that would have left Greece after the failure of the last round of negotiations, according to banking sources quoted by the agency ‘Reuters’.
The brain drain is running
Along with its financial capital, human capital of Greece is also deserting the country. Thus, between 2009 and 2014, the number of highly skilled workers who have definitively left Greece has increased by 10 compared to the previous 5 years, according to data from Eurostat, the European statistics institute. In Greece, the unemployment rate exceeds 25% and 55% for young people 15 to 24 years. The country fell into recession in the first quarter 2015 after having returned to growth in 2014 …
While experts are skeptical about the chances of reaching an agreement with Athens on Thursday and Friday, with the occasion of a meeting of the eurogroup, the specter of a flat capital controls now on Greece. Thus, the German newspaper ‘Süddeutsche Zeitung’ said Tuesday that Europeans decided to set up an emergency plan to prevent a bank run (“bank run”) in Greece if no agreement is reached by at the end of the week.
A capital controls imposed in the event negotiations fail?
The plan would aim to prepare a “control of financial flows” to the picture of what was imposed on Cyprus during the 2013 financial crisis (these restrictions were lifted in March). Athens, however, denied the existence of such a plan, while the European Commission would not comment on the information in the German daily.
According to the ‘Süddeutsche Zeitung’, in case of disagreement at Eurogroup (the finance ministers of the euro area), a summit of heads of state and government of the EU would be convened urgently in Brussels, perhaps as early as Friday, to develop this control plan capital, which would require to close the Greek banks for several days. Despite these rumors, the Athens Stock Exchange, the index Athex composite licks its wounds on Tuesday, with a decline limited to 0.5%, after suffering a dip of about 12% during the previous two sessions …
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